Indian auto sales continue their downward spiral

August 14, 2013: The fortunes of the Indian automobile industry continue to be under pressure with domestic sales during April-July 2013 declining by 2.09 percent over the same period last year.

According to April-July 2013 statistics released by apex industry body SIAM, passenger vehicles were down by 7.49 percent over the same period last year. Within this segment, passenger cars were one of the worst hit, declining by 9.73 percent while utility vehicles and vans dropped by 1.03 percent and 2.39 percent respectively during the period under review compared to the same period last year.

Another vehicle segment that was badly impacted by the ongoing slowdown was the commercial vehicle sector that registered a de-growth of 9.91 percent between April-July 2013 compared to the same period last year. Medium and heavy commercial vehicles (M&HCVs) registered a negative growth at 16.65 percent and LCVs also dropped by 6.11 percent.

Three-wheeler sales declined by 3.45 percent with passenger carriers and goods carriers also down by 2.84 percent and 6.05 percent respectively. Also impacted was the two-wheeler segment that posted a de-growth of 0.64 percent. Within this category, mopeds and motorcycles declined by 13.07 percent and 3.40 percent respectively, while scooters grew by 13.11 percent.

Overall automobile exports also declined by 3.37 percent. Exports of commercial vehicles and two-wheelers fell by 26.53 percent and 9.88 percent respectively, while passenger vehicles and three- wheelers registered growth at 2.39 percent and 46.47 percent respectively during April-July 2013 compared to the same period last year.

The industry produced a total of 1,729,002 vehicles including passenger vehicles, commercial vehicles, three-wheelers and two-wheelers in July 2013 against 1,745,532 in July 2012, registering a decline of 0.95 percent over the same month last year. With a good monsoon across the country and the festive season around the corner, OEMs are keeping their fingers crossed that the tide turns in their favour.

SHOBHA MATHUR