Utility vehicle (UV) sales fell for the first time in over four years in July, a drop of 17.53% to 37,010 units as buyers held back purchases because of increased acquistion and running costs. The UV segment, which had risen 52% in FY13, has recently been hit by increased excise duties (on SUVs) and rising diesel fuel prices even as overall consumer demand remain depressed on the back of slowing macro-economic growth.
UV sales had last seen a dip of 29% in May 2009.
Petrol car sales, however, made a comeback with the mini car segment recording a 16.52% jump in volumes to 43,787 units. Mini cars, which includes models like Maruti Suzuki?s Alto and WagonR and the Hyundai Eon, accounts for almost 23% of
India?s 2.7 million unit passenger vehicle market. Passenger car sales fell for the ninth month in a row with a 7.40% drop to 1.31 lakh units, pulling down overall passenger vehicle sales (including cars, utility vehicles & vans) by 8.31% to 1.86 lakh units.
Vishnu Mathur, DG of Society of Indian Automobile Manufacturers, said that more job cuts can be expected as companies look to cut costs. ?We have asked the government for support, while a duty cut seems tough, a fleet modernisation programme giving tax incentives for selling old vehicles in exchange for new is possible. Government purchases should be restarted. Departments and ministries have budget allocations but the austerity measures does not let them make new purchases,? he said.
In July, a low base (strike last year) and strong petrol car demand helped market leader Maruti Suzuki post a 5.80% jump in sales, while rival Hyundai saw a 5.87% drop. Lower UV demand hit Mahindra hardest, which saw a 27% drop in July sales, while Toyota Kirloskar and Tata Motors saw volumes drop 20% and 45%, respectively.
Total auto sector sales fell 2% to 14.15 lakh units with the scooter segment as the only exception with an almost 10% jump in volumes to 2.71 lakh units. However, overall two-wheeler volumes were almost flat (-0.06%) at 11.31 lakh units on the back of a 1.52% drop in motorcycle sales at 8.09 lakh units, the sixth consecutive month of decline. Hero MotoCorp saw an almost 1% jump in volumes, while Bajaj Auto saw an almost 24% drop. Honda, however, recorded over 21% growth.
Commercial vehicle (CV) sales fell 15% to 55,301 units, with light CV sales falling for the third straight month ? 12% dip to 36,690 units. Sluggish manufacturing growth and lower cargo movement led medium & heavy CVs sales to drop for the 17th month in a row with a 20% drop at 18,611 units in July.
