HomeAuto NewsAuto sales remain subdued in January as demand slowdown persists

Auto sales remain subdued in January as demand slowdown persists

Maruti Suzuki reported a marginal 1.6 percent rise in total sales in the month of January 2020 at 154,123 units as against 151,721 units sold in the same month last year.

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By Ankit Gohel  February 3, 2020, 10:19:55 AM IST (Updated)

Auto sales remain subdued in January as demand slowdown persists
The automobile sales in the month of January remained subdued on the back of low demand and dampened consumer sentiment. The largest passenger car maker Maruti Suzuki

reported a marginal 1.6 percent rise in total sales in the month of January 2020 at 154,123 units as against 151,721 units sold in the same month last year.

"Retail demand slowdown in December 2019 continues across consumer segments (PVs, 2-Ws) signalling weakness in consumer sentiment," ICICI Securities said in a report.

However, Tata Motors' overall sales, including exports in January, declined to 47,862 in January 2020 vehicles against 58,185 units sold in the same month of 2019.

The company's domestic sales fell by 18 percent YoY to 45,242 vehicles. Commercial vehicles' sales fell by 16 percent to 33,860 units while passenger vehicles' sales declined by 22 percent to 13,894 units YoY.

Hyundai Motor India's overall sales declined by 3.37 percent to 52,002 vehicles as against 53,813 sold in January 2019. Total domestic sales fell by 8.3 percent to 42,002 vehicles against 45,803 sold in the year-ago month.

However, the company's exports rose by 24.8 percent to 10,000 units as against 8,010 units YoY.

Meanwhile, Mahindra and Mahindra (M&M) reported a 6 percent fall in January sales to 52,546 units as compared to 55,722 units sold in the year-ago month. The domestic sales slipped 3 percent to 50,785 units while exports plunged by 45 percent to 1,761 units YoY.

"Going forward, we expect wholesales to track retails considering the BS-VI
changeover in Mar’20. Though incentives across OEMs peaked in Dec’19, we do not expect major decreases in Q4FY20 due to the demand situation. Attractive product launches in the upcoming Auto-Expo could aid in improving the demand outlook for FY21," ICICI Securities added.
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