Domestic car sales decline by over 10% due to slow economic growth

siam

Society of Indian Automobile Manufacturers has released a status report on the industry and has revealed that the car sales for April, compared to the same month last year have declined by 10.15%. 1,35,433 units were sold this April, compared to last years 1,50,737.

“This is the biggest decline since May 2013, when car sales dropped by 11.7 per cent,” SIAM Deputy Director General Sugato Sen reported. Total passenger vehicles, including, cars, SUVs, and vans sold this month were down by 9.50% at 1,88,541 compared to 2,08,341 units last year. Sale of commercial vehicles, an indicator of economic activity, fell even further, by about 24%, sold only 43,080 units compared to 56,683 units same month last year. Three wheeler sales too slowed down.

One sector that registered growth is the two wheelers, which grew by 11.67%, sold 13,04,447 units, compared with 11,68,100 units same month last year. Total exports for the month went up by 12.98 percent at 272,122 units from 240,865 units being shipped out.

This negative growth is seen across segments despite the Finance Minster Chidambaram’s reduction of excise duty by four to six percent in every category. Better growth of economy, anything upwards 7% will result in a positive growth in the automobiles, said the SIAM representative.

The public sector auto major Maruti Suzuki has registered a 14% decline, with 65,786 units sold, compared to last April’s 76,509 units. Maruti’s major rival Hyundai has seen a positive growth, an 8.48% raise selling 35,110 units compared to 32,364 units the same time last year.

Medaram Jathara

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