Motown is pinning its hopes on the outcome of the next general elections to get out of the prolonged rut that has lasted a full year till November, a month in which sales dropped 8% to 1.42 lakh units, with wary customers postponing new purchases. A slowing economy and dwindling demand have affected all segments of the auto industry, except two-wheelers that managed a 6% growth last month, helped by rural demand. The Society of Indian Automobile Manufacturers (SIAM), the industry’s apex body, is hoping for a turnaround but only after a new government comes to power at the Centre next year. The slump in sales in November put paid to the hopes of a turnaround that were raised by a lower 4% fall in October. Analysts believe sales might drop further in December and for the rest of the fiscal.
SIAM data shows all major carmakers posted drop in sales in November. Market leader Maruti Suzuki India recorded 6% decline in its domestic sales to 85,510 vehicles, while Hyundai Motor India’s sales dipped 4% to 33,501units. Other players like Tata Motors and Mahindra & Mahindra have posted bigger drops of 42% and 32%, respectively, in November against the previous year. Two wheelers proved to be the only saving grace and stayed positive last month. As per SIAM figures, the total two-wheeler sales in November grew 6% to 12.40-lakh units, aided largely by 25% growth in scooter sales.
Market leader Hero MotoCorp posted 6% growth to 5.20-lakh units in November, while rival Honda Motorcycle & Scooter posted a 46% growth in its bike sales to 3.06 units. However, the Pune-based Bajaj Auto’s bike sales declined 28% to 1,62,616 units against 2,27,186 units sold in the year-ago period.