The automobile sector has been facing a severe slowdown for the past several months now to the point that a continuous decline in sales has ceased to surprise.
In a clear sign that the slowdown in the economy is persisting, automobile sales in India crashed again by nearly a third in August 2019 over last year, marking the tenth straight month of decline. Numbers also indicate the upcoming festive season may not be enough to revive customer sentiment. Besides, contrary to automakers’ expectations that car sales have bottomed out, the worst may not be over yet.
So, how bad was the auto sales crash in August?
Maruti Suzuki's sales fell by a third, the worst show by the company ever. It sold a little more than 106,000 units this August, compared to about 158,000 units a year ago. Sales of mini cars, including the Alto and Wagon-R, stood at about 10,000 units, compared to almost 36,000 units in August 2018, down 72 per cent. Tata Motors’ sales in the domestic market declined 58 per cent over the corresponding period last year. The company sold a little more than 7,000 units this August, against over 17,000 last year. Hyundai Motor India's sales fell almost 17 per cent last month. Mahindra and Mahindra posted a near 32 per cent dip in sales.