Automobile sector has borne the brunt of the economic slowdown in the country and its travails seem far from being over. After a brief festive season uptick in October, auto sales in the country slumped again in November with most major manufacturers reporting a decline in sales last month.
Maruti Suzuki, the country’s largest automaker, on Sunday reported a nearly 2 percent drop in sales of its vehicles. Total sales in November fell to 1.5 lakh units and domestic sales were down 1.6 percent at 1.43 lakh from a year ago, Maruti said in a statement. Exports declined 7.7 percent at 6,944 units.
Mahindra and Mahindra (M&M) reported a 9 percent fall in its total sales in November, on a year-on-year basis. In a regulatory filing, the company said that it sold 41,235 units, including exports, last month, compared to 45,101 vehicles sold during the same period last year.
The numbers were even more startling for Tata Motors as it reported a 25.32 percent decline in total sales to 41,124 units last month.
Hyundai did better than its competition to record a 2 percent growth in November, aided by the launch of its sports utility vehicle (SUV) Venue.
Among other new car launches, MG Hector has been among the top selling models in the country this year, bucking the slowdown trend. It sold 3,239 units in November.
Meanwhile, the gross domestic product (GDP) growth for the second quarter (July-September) of the financial year 2019-20 dropped to 4.5 percent, the weakest pace in more than six years, due to weak consumer demand, slowing factory activities and negative impacts of the prolonged monsoon, according to data released by the government on Friday.
With the government data indicating a prolonged slowdown, the prospects of the auto industry’s fortunes in the country are unlikely to improve in the near future.