Indian Car Sales Decline for Second Consecutive Month in August

Strategic Insights -

Car sales in India declined for the second consecutive month in August, down 10% to 144,156 units as against 160,713 units sold a year ago, due to rising interest rates and higher fuel costs that dampened demand. Despite the onset of the festival season, many big car makers reported declining production of popular models to rationalize dealer stocks. The Society of Indian Automobile Manufacturers (SIAM) reported that passenger vehicle production fell 9.6% to 182,402 units in August.

Key Takeaways:

  • The Tata Nano production declined by 98.8% to 1,143 units in August, from 73,766 units in the same month last year.
  • General Motors India's Spark production decreased by 73.6% to 660 units, from 2,497 units.
  • Hyundai Santro production fell by 23.2% to 9,356 units, from 12,149 units.
  • The combined production of M800, A-Star, Alto, and WagonR was lower by about 20,000 units at 53,450 (73,766) in August.
  • Maruti Suzuki India's passenger vehicle production (cars and UVs) declined by almost 22% to 83,338 units in August.
  • Tata Motors produced 27% less passenger vehicles at 22,752 units in August.
  • Hyundai Motor India managed to log a modest 2.27% growth in manufacturing at 50,523 units by aggressively promoting exports.
  • Fiat India's production was less than half (down 54%) to 892 units in August.
  • Hindustan Motors produced 54% less cars at just 503 units in August.
  • Ford India's production was almost flat at 9,316 units in August.

Statistics:

  • Total passenger car sales declined by 9.6% to 182,402 units, from 201,034 units in August.
  • Passenger vehicle sales fell 5.9% to 191,914 units, from 203,872 units in August.
  • Exports of passenger vehicles witnessed a robust growth with a rise of 34.9% to 49,642 units, from 36,810 units.
  • Motorcycle sales grew 15.4% to 839,772 units, from 727,542 units in August.
  • Sales of trucks and buses rose 22.6% to 64,248 vehicles, from 52,394 vehicles in August.

Sources:

  • "Indian Car Sales Decline for Second Consecutive Month in August" by Diligent Media Corporation Ltd., DNA (Daily News & Analysis)
  • Society of Indian Automobile Manufacturers (SIAM)