Maruti Suzuki, the country's largest carmaker, has reported a 24.4 per cent decline in sales in September.
But Maruti is not the only auto company with dipping sales at the end of the second quarter. Mahindra & Mahindra also reported today a 21 per cent decline in total sales at 43,343 units in September. The Hinduja Group’s Ashok Leyland has reported a 55 per cent decline in total commercial vehicle sales at 8,780 units.
The drop in sales is across the board, right from hatchbacks to commercial vehicles signals that consumer confidence has not grown and the NBFC liquidity crunch is still a matter of concern. Mahindra has registered only a marginal rise in tractor sales. This taken with the dip in demand for two-wheeler sales indicates that rural stress has not lessened.
Leyland last month temporarily shut all its seven plants for periods of between five and 18 days, “due to continued weak demand” for its trucks and light commercial vehicles.
Tata Motors reported a 48 per cent decline in total sales at 36,376 units in September. It had sold a total of 69,991 units in the same month last year, the company said in a statement.
Its total domestic sales were down 50 per cent at 32,376 units as compared to 64,598 units in September last year, it said, adding passenger vehicle sales in the domestic market during the month stood at 8,097 units as against 18,429 units in September last year, a decline of 56 per cent.
Tata Motors said its commercial vehicle sales in the domestic market last month stood at 24,279 units as compared to 46,169 units in the year-ago month, a decline of 47 per cent. Exports of commercial vehicles were at 3,800 units in September as against 5,250 units in the same month last year, down 27.6 per cent, it said.
TVS Motor Co reported a 25.48 per cent decline in total sales in September at 3,15,912 units. The company, which primarily makes two-wheelers and three-wheelers, had sold 4,23,939 units in the same month last year, it said in a statement.
Total two-wheeler sales during the month stood at 3,00,909 units as against 4,10,657 units in September 2018, down 26.72 per cent. Domestic two-wheeler sales stood at 2,43,163 units last month as compared to 3,61,097 units in September 2018, a decline of 32.65 per cent, it added.
Hero MotoCorp, the country’s largest two-wheeler maker, had also announced plans to close its plants for four days in August.
Sundaram Clayton, the auto component maker of the TVS group, also announced that it would shut its Padi factory in Tamil Nadu for two days in August.
On the sales performance, deputy managing director N. Raja said: “The consumer sentiment continues to be subdued in September which has reflected in the sales slowdown in the industry.” However, he said the company expects consumer demand will see the much needed revival resulting in better retails due to Navratri and Diwali.
Veejay Ram Nakra, Mahindra's chief of sales and marketing in the automotive division, too hoped that the festival season would up the demand. “Navratri will augur well for us and the automotive industry,” he said.
This, in addition to factors such as the good monsoon and recently announced positive government initiatives should help revive the industry in the short term, he added.
Maruti sold 1,22,640 units in September, compared to 1,62,290 in September last year. It said its domestic sales declined by 26.7 per cent at 1,12,500 units last month as against 1,53,550 units in September 2018.
The sales of mini-cars, such as the Alto and WagonR, stood at 20,085 units, compared to 34,971 in the same month last year. That's down by 42.6 per cent.
The sales in the compact segment of models such as Swift, Celerio, Ignis, Baleno and Dzire fell 22.7 per cent at 57,179 units as against 74,011 cars in September last year. Mid-sized sedan Ciaz sold 1,715 units as compared to 6,246 units earlier.
Similarly, the sales of utility vehicles, including Vitara Brezza, S-Cross and Ertiga, declined marginally at 21,526 units as compared to 21,639 in the year-ago period.
Exports in September were down by 17.8 per cent at 7,188 units as against 8,740 units in the corresponding month last year, the company said.
Mahindra sales down 21 per cent in September
Mahindra & Mahindra, in the domestic market, saw a 21 per cent slide at 40,692 units last month as compared to 51,268 units in September 2018.
Exports also registered a decline of 29 per cent at 2,651 units as against 3,754 units in the year-ago month.
In the passenger vehicle segment, the company saw a slump of 33 per cent. Commercial vehicle sales were also down by 18 per cent.
Ashok Leyland’s bleak performance
Ashok Leyland's commercial vehicle sales have fallen by 56.57 per cent, the company said. The sales of 8,780 units in September is less than half of 19,374 units in the same month last year.
Leyland said that the sales of medium and heavy commercial vehicles in the domestic market declined 69 per cent to 4,035 units as compared to 13,056 units in the same month last year. Light commercial vehicles in domestic market stood at 3,816 units as against 5,022 units in September last year, down 24 per cent.
Mahindra has also reported a 2 per cent decline in total tractor sales at 37,011 units in September. The company had sold 37,581 units in the same month last year, M&M said in a regulatory filing.
While sales of tractors in the domestic market was marginally up, exports declined 41 per cent at 965 units as compared to 1,628 units in September 2018, the company said.
M&M president in the farm equipment sector Rajesh Jejurikar said: 'Good monsoons, reservoir levels and crop prices are all positives going into the festive season. The recent disruption caused by heavy rains has had an impact on short-term demand.'
Toyota Kirloskar sales dip as well
Toyota Kirloskar Motor has reported a 16.56 per cent decline in total sales at 10,911 units in September. The company had sold 13,078 units in the same month last year, the company said in a statement.
Domestic sales stood at 10,203 units last month, compared to 12,512 units in September 2018, a decline of 18 per cent.
Exports in September were at 708 units as against 566 units in the year-ago period, a growth of 25 per cent.