Auto sector slowdown: Passenger vehicle sales decline for 10th straight month; log worst-ever fall of 31.57% in August

India’s monthly passenger vehicle and car sales recorded their steepest fall ever in August, according to data released by an industry body on Monday, highlighting the continued slowdown in the sector amid assurances by the government for revival. Domestic passenger vehicle sales fell for the tenth straight month in August, declining 31.57 percent to 1,96,524 units from 2,87,198 units in the year-ago period. Previously, the worst decline in the segment was registered in July this year when wholesales had fallen 30.98 percent to 2,00,790 units.

August SIAM Data | Passenger car sales down 41.1% at 1.15 lakh units & 2-wheeler sales down 22.2% at 15.1 lakh units YoY pic.twitter.com/ojFa0spl7u

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Domestic car sales were down 41.09 percent to 1,15,957 units as against 1,96,847 units in August 2018, according to data released by the Society of Indian Automobile Manufacturers (SIAM) released on Monday. This is the worst-ever fall for both the categories since SIAM started recording the data in 1997-98. Sales of commercial vehicles were down 38.71 percent to 51,897 units in August, SIAM said. Vehicle sales across categories registered a decline of 23.55 percent to 18,21,490 units from 23,82,436 units in August 2018, it added. In fact, all vehicle categories witnessed a decline in sales during the month. [caption id=“attachment_7289551” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] In the PV segment, market leader Maruti Suzuki India posted 36.14 percent decline in its August sales at 93,173 units. Hyundai Motor India Ltd (HMIL) also witnessed 16.58 percent decrease at 38,205 units, while Mahindra & Mahindra posted a fall of 31.58 percent at 13,504 units in during the month. SIAM said passenger car sales in August were also the worst ever. Last month, domestic car sales were down 41.09 percent at 1,15,957 units as against 1,96,847 units in August 2018. Besides, total two-wheeler sales last month declined by a record 22.24 percent to 15,14,196 units compared to 19,47,304 units in the year-ago month. Commercial vehicle sales were down 38.71 percent to 51,897 units in August as compared with 84,668 units in August 2018. Similarly, motorcycle sales last month declined 22.33 percent to 9,37,486 units as against 12,07,005 units a year earlier. Scooter sales declined by 22.19 percent to 5,20,898 units as compared with 6,69,416 units in August last year. In the two-wheeler category, Hero MotoCorp registered a 20.97 percent drop in sales at 5,24,003 units, while rival Honda Motorcycle and Scooter India (HMSI) saw sales decline by 26.26 percent to 425664 units. Similarly, Chennai-based TVS Motor Co saw it sales slump by 20.37 percent at 2,19,528 units in August. On the other hand, August retail sales data showed a somewhat better picture in terms of sales, pointing to inventory correction taking place in the industry. As per retail sales data also provided by SIAM, total automobile sales declined by 4.15 percent 16,00,376 units as compared with 16,69,751 units in August 2018. Similarly, PV sales stood at 2,38,357 units last month as compared with 2,56,662 units in the same month of last year, a decline of 7.13 percent. Besides, total two-wheeler retail sales declined by 3.4 percent to 12,42,452 units in August as compared with 12,86,176 units in the year-ago period. With prolonged slump in sales, automobile and component manufacturers have been seeking GST cut on automobiles to 18 percent from 28 percent to help the sector come out of a prolonged slump that has resulted in job losses. The next GST Council meeting will be held on 20 September in Goa. (With inputs from agencies)