Car sales fall in for 15th consecutive month in January as economy slows

Car sales fall in for 15th consecutive month in January as economy slows
SHARE

Greater Noida: Car sales in India fell for the 15th consecutive month in January, as slowing economic growth and rising cost of car ownership made consumers reluctant to spend, the Society of Indian Automobile Manufacturers (SIAM) said on Monday.

Domestic passenger vehicle sales declined 6.2 per cent in January.

Passenger vehicle sales last month stood at 2,62,714 units against 2,80,091 units in the year-ago month, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Car sales last month were also down 8.1 per cent at 1,64,793 units compared with 1,79,324 units in the January last year.

Vehicle sales across categories registered a decline of 13.83 per cent to17,39,975units from 20,19,253 units in January 2019, SIAM said.

"Sales of vehicles continue to be stressed due to rising cost of vehicle ownership and slower growth in GDP," SIAM president Rajan Wadhera said.

Vehicle prices have gone up as manufacturers gear up for the transition to stricter emission norm BS-VI from BS-IV beginning April 1. Besides, many companies had increased prices in January citing rising input costs.

Wadhera further said, "We are hopeful that the recent announcements by the government on infrastructure and rural economy would support growth of vehicle sales going forward, especially in commercial vehicles and two-wheeler segment."

According to SIAM, total two-wheeler sales in January fell 16.06 per cent to 13,41, 005 units compared with 15,97,528 units in the same month last year.

Motorcycle sales last month declined by 15.17 per cent to 8,71,886 units from 10,27,766 units a year earlier.

Scooter sales during the month stood at 4,16,594 units as against 4,97,169 units in January last year, a decline of 16.21 per cent.

SIAM further said, sales of commercial vehicles were down 14.04 per cent to 75,289 units in January as against 87,591 units in the year-ago month.

Commenting on the overall sales performance, SIAM director general Rajesh Menon said wholesales declined in all segments, barring three-wheelers.

In passenger vehicles, he said post-festive season sales decline has been less, although the industry is still in the negative territory.

"We are hopeful that the response that we have received to the ongoing Auto Expo will help further improve consumer sentiment. Already there have been 70 unveils and launches so far," Menon added.

During January in the passenger vehicles segment, market leader Maruti Suzuki India witnessed 0.29 per cent increase in sales at 1,39,844 units.

Rival Hyundai Motor India saw its sales decline by 8.3 per cent at 42,002 units, while Mahindra & Mahindra saw a decline of 17.05 per cent at 19,794 units.

In the two-wheeler segment, market leader Hero MotoCorp saw its sales drop by 14.37 per cent at 4,88,069 units, while Honda Motorcycle and Scooter India also witnessed a decline of 6.63 per cent at 3,74,114 units.

Chennai-based TVS Motor Co also reported 28.72 per cent decline in sales at 1,63,007 units in January, SIAM said.

MORE IN FAST TRACK
SHOW MORE
The comments posted here/below/in the given space are not on behalf of Onmanorama. The person posting the comment will be in sole ownership of its responsibility. According to the central government's IT rules, obscene or offensive statement made against a person, religion, community or nation is a punishable offense, and legal action would be taken against people who indulge in such activities.