Car sales in India appear to be heading for a record eighth consecutive month of decline with major firms, including Maruti Suzuki, Tata Motors, Toyota and General Motors, reporting drop in June as economic slowdown and low consumer sentiments continue to affect demand.
Honda Cars India, however, posted over 3-fold jump in June sales on the back of its newly launched compact sedan Amaze. Hyundai Motor India and Ford India also reported increase in domestic sales bucking the declining trend.
In June 2013, Maruti Suzuki India (MSI) registered 7.8 per cent decline in domestic sales at 77,002 units as against to 83,531 units in June 2012, the company said in a statement.
MSI's sales in mini segment, including the M800, A-Star, Alto and WagonR, declined by 8.4 per cent to 31,314 units, while in the compact segment (comprising the Estilo, Swift and Ritz models), MSI witnessed 7.2 per cent fall in sales at 20,996 units. Sales of the DZiRE model fell by 8.7 per cent to 12,548 units.
Homegrown major, Tata Motors said its total passenger vehicle sales in the domestic market stood at 11,804 units in June, down 31.54 per cent from 17,244 units in the same month last year.
Likewise, Toyota Kirloskar Motor also reported 19.45 per cent decline in its domestic car sales at 13,805 units in June, 2013. It had sold 17,140 units in the corresponding month of last year.
Toyota Kirloskar Motor (TKM) Deputy Managing Director and COO (Marketing and Commercial) Sandeep Singh said the overall weak economic conditions continue to keep the market sentiments low and the market sluggish.
Another homegrown firm, Mahindra & Mahindra (M&M) domestic sales stood at 36,207 units as against 38,951 units in the same month last year, down 7.04 per cent.
"We have witnessed a de-growth in the month of June, 2013 amidst an overall decline in the auto industry. The depreciating rupee resulting in spiralling fuel costs coupled with high interest rates and the additional excise duty on SUVs has further dampened the industry without any substantial revenue to government," M&M Chief Executive (Automotive Division) Pravin Shah said.
Following the trend, General Motors India also reported 10.71 per cent decline in sales at 6,575 units in June 2013.
"The market also continues to remain subdued due to high fuel prices, high interest rates and various other structural bottlenecks and macroeconomic uncertainties," GM India Vice-President P Balendran said.