Before the holiday season, car sales stagnated in reverse
NEW DELHI: Sales of cars and SUVs were affected when the holiday season began. The volumes, which reached a minimum of almost two decades in July, appear to be ready to dive further. The fall occurs despite the fact that auto companies offer great discounts to attract buyers.
According to the numbers published by the main manufacturers of passenger vehicles: Maruti Suzuki, Hyundai, Mahindra, Mahindra and Tata Motors: demand remains moderate, leading to a double-digit drop in wholesale shipments to dealers.
by Sling Autos, agosto fue aún más doloroso ya que su caída del 49% en julio fue seguida by un colapso del 51% el mes pasado. Toyota It also declined, as its dealer numbers dropped 24% to 10,701 units versus 14,100 units sold in August last year.
The festive period begins in Maharashtra with Ganesh Chaturthi, while Navaratras will start in the north in the coming weeks. The biggest indicator that brings out the pain in the industry was the sustained deep crash witnessed by Maruti Suzuki.
The company's passenger car volumes fell 36% in August to 93,173 units against 1.45 lakh units in the same month last year.
Maruti chairman R C Bhargava had said that the industry remains besieged by a variety of negative factors, and “it may take some more time for positivity to come back into the market”. Discount levels at Maruti remain higher than the corresponding period, according to CFO Ajay Seth, and the company is now pinning its hopes on the festive season for any minor recovery. The industry has already had a series of meetings with finance minister Nirmala Sitharaman and top government functionaries over the slowdown, as jobs are being taken away across factories, including at manufacturing facilities of component makers and dealerships.
Vikas Jain, head of sales for Hyundai India, said the pain continues to torment the industry even when efforts are being made to attract steps at the points of sale. The numbers have dropped since July of last year and, except in October 2018, total industry volumes have been negative so far, Jain said. Interestingly, the industry slowdown occurs even when new brands such as MG Motor and Kia Motors have joined the brigade. Rookies enjoy strong waiting periods. However, instead of growing the industry, the new companies only ended up consuming the number of other brands, said one of the industry officials, requesting anonymity.