Automobile industry sales in India faces its worst-ever drop in August with despatches in all segments, including Cars and two-wheelers, continuing to plummet as the sector reels under an unprecedented downturn, automobile industry body SIAM reported on Monday.
This is the sharp fall in overall automobile sales in India since the Society of Indian Automobile Manufacturers (SIAM) started recording wholesale vehicle sales data in 1997-98.
As per information released by the automobile industry body, auto sales across categories, including passenger vehicles (PVs), two-wheelers and commercial vehicles (CVs) stood at 18,21,490 units last month as against 23,82,436 units in August 2018, a fall of 23.55 percent.
In July, overall automobile sales had witnessed its steepest fall in nearly 19 years, dropping 18.71 percent to 18,25,148 units last month as against 22,45,223 units in July 2018.
However, domestic PV sales saw its worst-ever fall in August, slumping by 31.57 percent to 1,96,524 units from 2,87,198 units in the year-ago period.
The worst fall in segment was registered in July 2019, when wholesales had declined 30.98 percent to 2,00,790 units.
The fall in PV sales in August was also the tenth consecutive month of decline. All vehicle categories witnessed a fall in sales during the month.
In the PV segment, market leader Maruti Suzuki India posted a 36.14 percent decline in its the month of August sales at 93,173 units.
Hyundai Motor India Ltd (HMIL) also witnessed 16.58 percent weaken at 38,205 units, while Mahindra & Mahindra posted a fall of 31.58 percent at 13,504 units during the month.
SIAM said passenger car sales in August were also the worst ever. Last month, domestic car sales were down 41.09 percent at 1,15,957 units as against 1,96,847 units in August 2018.
Besides, total two-wheeler sales last month declined by a record of 22.24 percent to 15,14,196 units compared to 19,47,304 units in the year-ago month.
Commercial vehicle sales were down 38.71 percent to 51,897 units in August as compared with 84,668 units in August 2018.
Similarly, motorcycle sales last month fall 22.33 percent to 9,37,486 units as against 12,07,005 units a year earlier. Scooter sales fall by 22.19 percent to 5,20,898 units as compared with 6,69,416 units in August last year.
In the two-wheeler category, Hero MotoCorp registered a 20.97 percent decline in sales at 5,24,003 units, while rival Honda Motorcycle and Scooter India (HMSI) saw sales fall by 26.26 percent to 425664 units.
Similarly, Chennai-based TVS Motor Co saw its sales slump by 20.37 percent at 2,19,528 units in August.
August retail sales data showed a somewhat better picture in terms of sales, pointing to inventory correction taking place in the automobile industry.
As per retail sales data also provided by SIAM, total automobile sales industry falls by 4.15 percent 16,00,376 units as compared with 16,69,751 units in August 2018.
Similarly, PV sales stood at 2,38,357 units last month as compared with 2,56,662 units in the same month of last year, a fall of 7.13 percent.
Besides, total two-wheeler retail sales declined by 3.4 percent to 12,42,452 units in August as compared with 12,86,176 units in the year-ago period.
With prolonged slump in sales, automobile and component manufacturers have been seeking GST cut on automobiles to 18 percent from 28 percent to help the sector come out of a prolonged slump that has resulted in job losses. On September 20 is next GST Council meeting will be held in Goa.
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