Traditional Indian festival season new car buying failed to produce strong signs of recovery in August, prompting the local auto association to lower its fiscal year 2012/13 sales target.
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The month long lockout at market leader Maruti Suzuki’s Manesar plant overshadowed the miniscule gains of other companies last month, reported the Economic Times of India (ETI). Maruti’s sales dipped 35% as the two plants in Manesar that make its largest-selling cars such as the Swift and DZire mostly remained shut last month. With these plants re-starting on 21 August 21, Maruti managed to sell 50,129 cars in the domestic market while exports plunged 72% to just 4,025 cars.
The Society of Indian Automobile Manufacturers (SIAM) has dropped its car sales growth target to 9% from 10-12% due to high fuel prices and expensive interest rates. The general gloomy mood in the market is largely impacted by weak economic sentiments that are forcing customers to postpone new buys, ETI said.
Hyundai India’s sales rose 6% to 28,257 cars last month. The automaker re-entered the executive sedan segment with the launch of the Sonata sedan last month and said weaker customer sentiments kept sales sluggish.
“The market demand is suppressed due to general inflationary trend, high fuel prices and interest rates. Unless any major triggers get activated, the market is not expected to improve much even in coming months,” Hyundai’s sales chief Rakesh Srivastava told ETI.
Tata Motors’ passenger vehicle sales rose 33% to 22,311 units in August, boosted mainly by a five-fold increase in demand for the Nano which sold 6,507 units. Utility vehicle model sales – Sumo, Safari and Aria – increased 38% to 4,584 and volume of the flagship Indica hatchback was up 5% to 7,591.
Mahindra & Mahindra managed double-digit sales for the fifth consecutive month of the current fiscal year as sales rose 39% to 21,831 vehicles in August. Toyota Kirloskar Motor also reported growth and Ford India said domestic sales rose 6% to 7,840 units.
Analysts told ETI the festive season may turn around sales.
“Consumers are wary in the market conditions amid uncertain economic conditions,” said Sageraj Bariya, managing partner at Equitorials.
