Pre-election weak spending, dampened business sentiment hit automobile sales in March

  • Miles
  • April 2, 2019
  • Comments Off on Pre-election weak spending, dampened business sentiment hit automobile sales in March

Automobile manufacturers have reported a decline in sales for March on a year-on-year (YoY) basis as consumer spending weakened in the pre-election phase and business sentiment dampened temporarily.

Both, the passenger car and the two-wheeler segments were hit by the poor sentiment during the month.

In the passenger car segment, market leader Maruti Suzuki India reported a decline at 1,45,031 units during the month compared with 1,47,170 units in March 2018.

Hyundai Motor India, the second largest player, also reported a drop of around 8 per cent to 44,350 units (48,009).

Tata Motors reported a decline of 12 per cent YoY to 17,810 units in March (20,266).

However, the other home-grown company Mahindra & Mahindra reported a growth of 4 per cent at 27,646 units (26,555).

Honda Cars India, which recently launched the all-new Civic, reported a 27 per cent jump, selling 17,202 units (13,574).

Amaze, growth driver

“Strong sales effort from the dealers and the company in the prevailing tough market scenario resulted in this growth, which is ahead of the industry. One of our growth drivers was the all new Amaze. The launch of our global bestsellers Civic and CR-V reinforced Honda’s premium product line-up,” Rajesh Goel, Senior Vice-President and Director, Sales and Marketing, Honda Cars India Ltd, said.

The other Japanese subsidiary Toyota Kirloskar Motor grew by 2 per cent in sales during at 12,818 units compared with 12,539 units in March 2018.

N Raja, Deputy Managing Director, Toyota Kirloskar Motor, said: “Innova Crysta and Fortuner have been maintaining the growth trajectory and continue to be leaders in the segment.”

2-wheeler segment

In the two-wheeler segment, market leader Hero MotoCorp reported a steep sales decline of 20 per cent YoY at 5,81,279 units (7,30,473). Honda2Wheelers did not share the monthly numbers.

In the commercial segment, while Tata Motors and Volvo Eicher Commercial Vehicles reported a positive growth, Mahindra & Mahindra and Ashok Leyland reported a decline in sales in March.

[“source=thehindubusinessline”]