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TheIndian automobile sector is reeling under a slowdown induced by the government's demonetisation move, as many manufacturers reported lower sales figures for November.
"Demonetisation will have significant negative impact at least in the next two to three months across the board in the automotive sector especially two wheelers, SUVs, luxury vehicles, commercial vehicles," said Abdul Majeed, Partner with Price Waterhouse.
However, the country's largest carmaker Maruti Suzuki seems to have bucked the trend and reported a 12.2 per cent increase in sales for November.
According to the company, its sales during the month under review stood at 135,550 units from 120,824 units sold in the like period of last year.
For last month, the company's domestic sales surged by 14.2 per cent to 126,325 units from 110,599 units sold during the corresponding period of 2015.
Nevertheless, exports declined by 9.8 per cent with 9,225 units shipped out -- from 10,225 units sold abroad in November last year.
Another major automobile manufacturer Tata Motors' passenger and commercial vehicle sales including exports remained flat at 38,900 units from 38,918 units sold during November 2015.
The company's domestic sales of commercial and passenger vehicles declined by six per cent to 33,274 units.
Tata Motors domestic passenger vehicles sales grew by 22 per cent to 12,736 units from10,470 units sold during November, 2015.
"The passenger car sales continued its growth momentum due to strong demand for the Tata Tiago," the company said in a statement.
However, domestic commercial vehicles sales during the month under review fell by 17 per cent to 20,538 units.
"The impact of demonetization was felt across all segments," the statement said.
Automobile major Mahindra and Mahindra (M&M) reported a decline of 22 per cent in its total sales during last month.
The company sold 32,499 units during the month under review from an off-take of 41,590 units during the corresponding period of last year.
"While we expected an improved auto industry performance on the back of the festive season and other positive parameters such as rural demand and interest rates softening, the sudden announcement of demonetisation has brought in an immediate disruption and uncertainty," Pravin Shah, President & Chief Executive (Automotive), M&M
"While it is a good and welcome step in the mid to long term, this has dampened overall sentiments leading to postponed buying thereby resulting in a major drop in volumes during November. This is significant as the automotive industry had just started experiencing stability post a long and tough period of uncertainty."
For last month, the company's domestic sales declined by 24 per cent to 29,814 units, from 39,383 units sold in November last year.
The sales of passenger vehicles (which comprise utility vehicles, cars and vans) edged lower by 33 per cent to 13,217 units, from 19,662 units during the like month of 2015.
In addition, commercial vehicles segment's sales declined by 15 per cent to 12,644 units, from an off-take of 14,801 units during November 2015.
Moreover, three-wheelers' off-take decreased by 20 per cent to 3,953 units from 4,920 units clocked in the like period of last year.
The company's exports surged by 22 per cent to 2,685 units from 2,207 units shipped-out during November 2015.
In contrast, Toyota Kirloskar Motor's domestic sales increased by 10 per cent to 11,309 units.
The company also exported 1,284 units of the Etios series in November 2016 clocking a total of 12,593 units.
Besides, Volkswagen Passenger Cars India closed last month selling 4,014 units, as compared to 1,942 units sold in in the same month last year.
Achieving an upward growth curve, Volkswagen attributes majority of this growth to increasing sales of the Ameo.
Commercial vehicles major Ashok Leyland closed last month selling 9,574 units, up from 8,971 units sold in November 2015.
The TVS Motor Company posted sales of 224,971 during the month under review as against 225,401 units sold in November 2015.
"Due to the demonetisation exercise, the company witnessed a short-term impact on November sales," the company said in a statement.
"However, we are seeing a sales pickup already happening and we believe, it is a very good move for the country in the long term."
Japanese two wheeler maker Honda Motorcycle and Scooter India closed last month selling 325,448 units, compared to 326,466 units sold in November 2015.
"Compared to festival buying in November last year, this year the industry was prepared for an organic correction in November. However, demonetisation announcement took everyone with surprise.
Two-wheeler sales dropped by 50 per cent in the first 3-4 days of announcement.
"But recovery started week two and by the end of month, Honda's all India sales returned to almost 80 per cent of normal level with South, West and East leading the recovery," Y. S. Guleria, Senior Vice President-Sales and Marketing was quoted as saying in the statement.
"Looking ahead, we remain cautious on recovery forecast next month as December is traditionally a lean sales month," the company said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)