Automobiles Industry Hurtles Downhill

The automobile industrys downhill journey continued in August, with production and sales figures plunging further. The production of cars registered a sharp decline of 9.31 per cent while sales dipped 9.3 per cent over July, although there was an improvement in comparison with August 1996. Three-wheelers were the only segment that recorded an all-round improved performance.

According to figures provided by the Association of Indian Automobile Manufacturers, the production of cars, which had recovered to 37,827 in July from 34,318 in June, fell again to 34,303 in August. However, this was an improvement over the 31,822 cars produced in August 1996. Sales stood at 35,781 against 39,453 in July and 32,078 in August last year.

These figures do not include the production and sales of DCM Daewoo, which has not yet furnished its records.

The slowdown was more pronounced in two-wheelers, which saw production sinking to 229,410 from 248,176 in July and 265,830 in August last year. Sales, however, improved slightly to 243,479 from 237,410 in July but were substantially lower than the 245,412 sold in August last year.

Three-wheelers notched an improved performance, with production rising to 19,896 from 18,418 in July and 17,287 in August last year. Sales, too, increased to 19,876 from 18,120 in July and 17,593 in August last year.

Figures for companies show that Bajaj Auto suffered badly, with its production of scooters sliding to 44,857 in August this year from 64,795 in the same month last year, while month-on-month sales declined from 55,745 to 49,133. The companys motorcycle production too dipped to 21,225 from 27,351 in August 1996 while sales declined to 22,701 from 23,016.

Production of mopeds by Bajaj slipped to 4,606 in August this year from 6,700 in the same month last year, while sales declined to 4,897 from 6,929. However, the companys production of three-wheelers increased to 17,386 from 14,687. Three-wheeler sales, too, increased to 17,434 from 15,094.

By comparison, LML did better, with its production of scooters declining marginally to 25,000 from 25,200. Scooter sales by the company actually improved to 25,637 in August this year from 23,620 sold in the same month last year.