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The continuing slowdown across automobile segments due to higher base, liquidity constraints and higher cost of finance resulted in subdued sales in May.
However, the companies are hopeful of a sales turnaround with a stable government at the Centre and forecast of a normal monsoon.
“With a stable government at the Centre and the forecast of a near-normal monsoon, we hope to see an improvement in consumer sentiment over the next few months,” Rajan Wadhera, President, Automotive Sector, M&M, said.
“In the months to come, we are positive of bouncing back with our robust product line-up and will strive towards driving volumes and increasing our market share as part of our on-going turnaround journey,” Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors, said.
Rajesh Goel, Senior Vice-President and Director, Sales and Marketing, Honda Cars India, said the market continues to be tough for the auto industry with two consecutive months of such high de-growth.
“It is unprecedented in the last two decades. After elections, we were expecting an upswing which has not yet come. Factors like liquidity that is affecting capital to auto sector along with increase in fuel prices have remained a challenge to revive consumer sentiments,” he said.
In the passenger vehicles segment, sales of market leader Maruti Suzuki India declined 25 per cent to 1.21 lakh units during May, compared with 1.61 lakh units in May last year.
Similarly, the second largest car maker Hyundai Motor India reported a decline of 6 per cent in domestic sales to 42,502 units (45,008 units). Nexon-maker Tata Motors reported a drastic fall of 38 per cent year-on-year (YoY) to 10,900 units(17,489 units). However, the company said it was hoping for better days ahead.
Mahindra & Mahindra reported a marginal decline in sales to 20,608 units (20,715 units).
Japanese subsidiaries Honda Cars India and Toyota Kirloskar Motor reported decline in YoY sales by 28 per cent and 7 per cent respectively.
In the two-wheeler segment, market leader Hero MotoCorp reported an 8 per cent decline in YoY sales to 6.52 lakh units in May, compared with 7.06 lakh units in May last year.
Similarly, Himalayan-maker Royal Enfield reported a decline of 17 per cent at 60,211 units (72,510 units).
In the commercial vehicle segment, both M&M and Tata Motors reported decline in sales.
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