The Hindu Business Line : Car sales skid 11 pc in July

Sales dropped to 63,084 units in July compared with 70,606 units in the same month last year, data released by the Society of Indian Automobile Manufacturers (SIAM) showed.

The culprit though, analysts point out, is not only the heavy rains, which severely affected Maharashtra and Gujarat last month, but there has been an overall slowdown in the passenger car segment since April this year due to the implementation of the value-added tax regime and newer emission norms.

Out of 10 companies surveyed, all but two firms recorded a dip in sales in the month. In fact, all the three major car companies - Maruti Udyog, Hyundai Motor India and Tata Motors - also saw their sales falling in the month.

While Maruti sales fell by about 1.2 per cent, sales of Hyundai and Tata Motors declined by about 18 per cent each. July was the second straight month of decline for passenger cars, after sales fell by a per cent in June.

Mobikes zip ahead

Two-wheeler sales also saw a decline in July, dropping by 2.5 per cent to 4,83,090 units (4,95,456 units). This was primarily due to a 35 per cent fall in sales of scooters even as motorcycle sales grew 5.7 per cent to 3,99,779 units.

Motorcycles recorded sales of 3,99,779 units in July against 3,77,899 units in the same month last year. Positive numbers for market leader Hero Honda and its rival Bajaj Auto propped up the sales, even as other bike makers struggled.

Notwithstanding the mild growth in July, motorcycle sales in the first four months of the fiscal are up a healthy 17.72 per cent to 17,10,218 units (14,52,789), SIAM said.

The strike at the factory of segment leader Honda Motorcycle and Scooter India, which ended at the end of July, was among the primary factors resulting in a drop in scooter sales. Scooter/scooterette sales in July stood at 55,627 units (86,030 units), a decline of 35.34 per cent. Analysts pointed out that it might take a few months for the positive trend to return in the scooter segment, as Honda's production inches towards normalcy.

Commercial vehicle sales saw a five per cent growth in July at 23,831 units (22,732 units), though the medium and heavy commercial vehicle segment saw a decline in sales.

Light commercial vehicle sales, however, saw a 16.58 per cent increase in July at 10,265 units (8,805 units).

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