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Wednesday, December 11, 2019

Passenger vehicle sales move downhill in June

In Slow lane: Car makers attribute the dip to petrol price hike and high interest rates

Written by ENS Economic Bureau | New Delhi | Published: July 3, 2012 2:10:34 am

Tough market conditions,primarily due to high interest rates,coupled with a steep hike in petrol prices,have hit domestic sales of passenger vehicles in June with all car makers registering a decline in month-on-month (MoM) sales.

While the country’s largest automaker,Maruti Suzuki,recorded a 6.6 per cent MoM dip,the second-largest car maker,Hyundai Motor India,posted a decline of 4.87 per cent. Tata Motors witnessed a steep 15 per cent fall in passenger car sales during June as compared to May. Both Mahindra & Mahindra and Toyota had a decline in the overall sales to 6.4 per cent and 5.1 per cent,respectively.

The story is not much different even on a year-on-year (YoY) comparison for auto majors,such as Tata Motors and Hyundai. While Tata Motors recorded a 22 per cent fall in passenger car sales,Hyundai remained flat,clocking only 0.15 per cent growth compared to June 2011 figures.

On YoY basis,Maruti,however,managed to beat the trend,posting a 20 per cent spurt in sales (over June 2011),primarily due to a low base effect,since around this time last year its production was crippled by a 11-day strike at its Manesar plant. M&M and Toyota,on a YoY basis,clocked 23 per cent and 22 per cent growth,respectively. M&M sold 19,792 units in June this year (16,053 units in June 2011),while Toyota sold 14,700 units (12,034 units).

Bumpy Ride

Company *June’12 *May’12 M-o-M % *June ‘11 *Y-o-Y %

Maruti Suzuki 83,531 89,478 -6.6 70,020 19.30

Hyundai Motor 30,450 32,010 -4.87 30,402 0.15

Tata Motors 17,244 20,503 -15 21,994 -22

M&M 19,792 21,154 -6.4 16,053 23

Toyota 14700 15,501 -5.1 12,034 22

Hero Motocorp 5,34,091 5,56,644 -4 5,12,244 4.20

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