Auto industry continues to suffer from enduring slowdown as it recorded a massive 41% decline in sales in August 2019. Only to 10,636 units were sold compared to 17,977 units sold in August last year.
Related: Car Sales Decline: Segment-Wise Data
During the first two months of current fiscal year 2019-20, passenger cars sales dropped by 31% to 27,108 units compared to 39,354 units sold during the same period last year. With the exception of newly launched Alto 660cc, all other vehicles suffered a huge blow.
In August, sales of 1300cc cars dropped by 63% to 2,997 units compared to 8,028 units sold during August 2018. Toyota Corolla witnesses a 59% decline in sales to 1,727 units against 4,204 units sold during August 2018 whereas sales of Honda Civic and City (combined) went down by whooping 68% to 1,106 units from 3,469 units, compared to the same period last year.
1000cc segment comprising of Suzuki Cultus and WagonR witnessed a drop in sales by 50% to 1,934 units against 3,830 units in previous year. Although Cultus sold 1,289 units compared to 1,380 sold in August a year earlier, its WagonR that suffered a major dent with only 645 units sold compared to 2,450 units in August 2018.
Below 1000cc Cars
The newly launched Suzuki Alto 660cc which appears to have done well with 3,435 units sold in August 2019, also suffered from a 21% reduction in sales compared to 4,584 units sold in July 2019.
Sale of trucks dropped to 239 units from 615 units, while sale of buses decreased to 42 units only from 107 units sold in August last year.
Sales of 4x4s decreased to 296 units from 696 units during the corresponding period last year. Only 88 units of Toyota Fortuner were sold compared to 204 units in July 2018. Honda BR-V sales were also cut to half with just 208 units sold in August 2019 versus 492 units sold in the same month a year earlier.
Sale of tractors also decreased to 2,545 units from 7,913 units during the corresponding period last year. Not only four wheelers, sales of three wheelers (rickshaws) and motor bikes also decreased to 126,338 units from 140,243 units last year.
Due to devaluation of currency and additional duties & taxes imposed by the government, automobile prices have gone beyond the reach of masses thus badly affecting the sales. Auto industry had forecasted to increase its sales to 0.3 million by 2021 and half a million units by 2022; however in the current scenario the sector is far from achieving this goal.