Auto slowdown: UV domestic sales fall for first time since May 2009

New Delhi: Domestic sales of Utility Vehicles (UVs) fell in the negative territory for the first time since May 2009 this July, thanks to various Government initiatives like higher duties on such vehicles and making diesel fuel progressively more expensive. Most of the UVs run on diesel.

But interestingly, while domestic sales of this category of large fuel guzzlers declined for the first time in 50 months, exports jumped by almost 600% or six times. This was largely due to the two hottest Indian SUVs - Ford’s EcoSport and Renault Duster (sold overseas as Dacia Duster).

[caption id=“attachment_1026339” align=“alignright” width=“380”]  UV exports jumped to 4370 units since 1908 units of the EcoSport were exported. Reuters[/caption]

According to data by the Society of Indian Automobile Manufacturers (SIAM), UV exports jumped to 4370 units from a mere 635 units in the same month last year since 1908 units of the EcoSport and 1711 units of the Duster were exported from India. Last July, these cars were not being produced. Domestic sales of these cars also jumped: EcoSport was 4715 units (zero last July) and Duster was 2,189 units (zero last July). Total domestic UV sales were down to 37,010 units from 44,878 in July last.

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UVs were one of the few categories of vehicles which were showing promise over the last few months, when sales of almost all other types of vehicles were lower. Now, here too the slowdown has begun to pinch. SIAM data showed thatsales of the medium and heavy trucks declined for the 17th straight month this July, it was the ninth consecutive month of fall for passenger cars and six months running for motorcycles. The only positive category for domestic sales this July were scooters. All numbers for sales are dispatches made by the companies to their dealers.

Domestic car sales declined by 7.4% to 1,31,163 units (1,41,646 units); motorcycle sales were down 1.52% to 8,09,312 units (8,21,821 units). Total two-wheeler sales in July 2013 declined by 0.06 per cent to 11,31,992 units (11,32,696 units). Total sales of commercial vehicles declined by 14.93% to 55,301 (65,008 units). Total sales of vehicles across categories declined by 2.08% to 14,15,102 units (14,45,112 units).

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The SIAM data shows that in the mass market, commuter bike segment, four of the biggest bike makers dispatched lesser number of vehicles this July versus lat July. so popular models such as Platina, Splendor and Passion did not really find as many takers this July as in the same month last year. So while Bajaj’s domestic sales in the 75-110 cc bikes were down significantly to 63,886 units (107,653 units), Hero MotoCorp was down to 343,764 units (375,427 units);

India Yamaha Motor was down to 3100 units (4833 units) and TVS Motor Co was at 23,697 units (26,924 units).