Motorcycle sales up 15.43%, car sales drop 10% in Aug

Domestic passenger car sales declined for the second consecutive month with the automobile industry posting a dip of 10.08 percent in August this year, impacted by high interest rates and production cuts by the country’s BIGGEST CAR-MAKER Maruti Suzuki India.

According to figures released by the Society of Indian Automobile Manufacturers (Siam) today, domestic passenger car sales stood 144,516 units in August, 2011, as against 160,713 units in the same month last year.

“High interest rates continued to be a big problem for the industry and it is impacting the cost of finance for both companies and customers, “Siam director general Vishnu Mathur said.

He said, however, with the onset of the festive season and the good monsoon this year, the industry is hoping that there will be a turnaround in car sales growth.

During August this year, Maruti’s sales declined by 19.21 per cent to 63,296 units from 78,351 units in the same month last year. The company has been facing labour issues at its Manesar plant, where production has been impacted. Similarly, rival Hyundai Motors posted a 7.51 percent decline in sales to 26,451 units in August this year from 28,601 units in the same period last year.

Tata Motors also reported a 39.45 per cent decline in sales to 13,508 units in August this year from 22,312 units in the same period last year.

Domestic passenger car sales had fallen for the first time after 30 months of continuous growth in July, registering a 15.76 percent decline to 1,33,747 units, mainly due to hikes in lending rates and lower production by market leader Maruti Suzuki during the month. Mathur said that sales in September and October will be crucial in determining how much growth the industry will achieve this fiscal.

According to figures released by Siam, motorcycle sales grew by 15.43 per cent during the month to 839,772 units from 727,542 units in the corresponding month last year.Market leader Hero Moto-Corp posted a 19.56 per cent rise in sales to 462,196 units in August this year from 386,574 units in the same period last year.

In contrast, Bajaj Auto saw an 8.10 per cent rise in sales to 226,559 units in August this year from 209,567 units in the same period last year.

TVS Motor Company also posted a 13.2 per cent increase in sales to 56,186 units in August, 2011, from 49,630 units in the corresponding period of the previous year.

The scooter segment grew by 24.84 per cent to 212,750 units in August this year from 170,414 units in the same period last year.

Honda Motorcycle and Scooter India (HMSI) reported a 31.52 per cent rise in sales to 97,860 units in August, 2011, compared to 74,405 units in the corresponding year-ago period.