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Our Bureau

Mumbai, Aug 11

Passenger car and utility vehicle sales in the country marginally dipped while commercial vehicle sales showed moderate growth in July.

However, two-wheeler sales substantially went up last month, according to the data released by the Society of Indian Automobile Manufacturers (SIAM).

The carmakers in the country together sold 1,526 units less than they sold during the same month last year. Similarly, the combined utility vehicle sales also dropped, thanks to the additional tax burden on vehicles above 1500 cc apart from rising fuel and finance costs. The total passenger vehicle segment that includes cars and utility vehicles declined 1.4 per cent to 1,13,822 units.

Tata Motors, Honda, Mahindra Renault and Ford reported drop in sales while major carmakers Maruti Suzuki and Hyundai showed marginal increase. General Motors sales grew substantially to 4,415 units. In utility vehicle segment, Mahindra, Tata Motors and GM showed decline while Toyota last month sold 609 UVs more than it sold during the year-ago period.

“This is a sluggish phase for the Indian automobile industry. The passenger car market is not going to improve in the near future,” said Mr P. Balendran, Vice-President, Corporate Affairs, General Motors India. Rising finance cost is the main reason while input cost, fuel price and global recession also contribute to the negative trend, he said. “Some numbers may come from new introductions but the general trend will be negative,” he said.

The total commercial vehicle sales at 34,359 in July are marginally higher than the sales during the corresponding period last year. However, the combined sale in medium and heavy commercial vehicle segment (MHCV) at 17,557 is a few hundreds less than the year-ago period.

“The MHCV segment continues to be flat as rising interest rate, fuel cost and liquidity crunch are putting transporters under pressure,” said Ms Vaishali Jajoo, Auto Analyst, Angel Broking.

The two-wheeler segment reported 19 per cent growth by selling close to six lakh units last month. The growth is mainly attributed to the low base effect. In motor cycles sub-segment, market leader Hero Honda (2.6 lakh units) and others including TVS, HMSI and Yamaha showed growth while the second largest player Bajaj (1.13 lakh units) showed slight decline. Three-wheeler segment also showed flat growth.

On export front, passenger cars, two-wheeler and LCVs showed substantial growth while medium and heavy commercial vehicle segment declined. According to analysts, the industry as a whole is showing signs of decline. “The negative factors would lead to low volume in the current year,” said Ms Jajoo.

More Stories on : Automobiles | Trends

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