Car sales decelerate in August as big three slide

Domestic car sales in August went on a down-slide, with the big three makers-- Maruti Suzuki India, Hyundai Motor India and Tata Motors-- posting a decline in their monthly numbers.

Amid tough market conditions due to high interest rates and fuel prices, sales got further hurt for Maruti Suzuki India (MSI) due to the ongoing labour issue at its Manesar plant that affected production. MSI said it recorded sales of 77,086 units in the domestic market last month, a 16.82 per cent fall from 92,674 units in August, 2010.

Hyundai Motor India Ltd (HMIL) also said its sales declined 6.7 per cent to 26,677 units in August 2011 from 28,601 units in the same month last year. “The market continues to be tough and there is no sign of recovery in the immediate future. The rising fuel prices and interest rates have been instrumental in this sluggish market trend,” HMIL Director (Marketing and Sales) Arvind Saxena said.

Homegrown auto major Tata Motors’ total passenger vehicles sales in the domestic market stood at 16,829 units in August, a fall of 33.25 per cent from 25,212 units in the same month last year.

The company’s latest offering Nano’s sales stood at 1,202 units during the month, down 85 per cent, the company said. Some other manufacturers, including Toyota Kirloskar Motor (TKM) and General Motors India, reported an increase in sales on the back of new models.

TKM said its August sales zoomed 83.82 per cent to 11,693 units, driven by a robust demand for utility vehicle ‘Innova’ and its latest products ‘Etios’ and ‘Liva’. General Motors India posted a growth of 14 per cent at 9,050 units in August, led by good response to Chevrolet Beat Diesel.

Mahindra & Mahindra said its domestic sales rose by 31.09 per cent at 35,756 units during the month compared to 27,275 units in the year-ago period. Ford India said its overall sales grew nine per cent at 8,914 units benefiting from the all-new sedan Fiesta and also from compact car Figo.

Volkswagen said it sold 6,091 units in India during the month, a growth of 72 per cent over the same month last year. Honda Siel Cars India reported 25 per cent growth in August at 6,907 units.

In the two-wheeler segment, market leader Hero MotoCorp reported 18.61 per cent jump in its total sales for August at 5,03,654 units.

TVS Motor Company also posted 14 per cent growth in sales in August to 194,898 units, while India Yamaha Motor reported 29.64 per cent increase in its total sales in August at 39,490 units.