Slowdown, inflationary pressures affect automobile sales in August

Production losses at Maruti Suzuki, high interest rates and rising fuel prices resulted in lower sales for the auto industry in August.

Crippled by a lockout at its manufacturing facility in Manesar in Haryana, Indian passenger car market leader Maruti reported a major fall in August sales.

Maruti Suzuki logged 40 percent lower sales in August at 54,415 units last month as against 91,442 units sold in August 2011.

The company said sales were lost owing to the lock out at the Manesar plant and the supply of Swift, Dzire, SX4 and A-star models were impacted.

However, Chennai-based automobile major Hyundai Motor reported an increase of 5.9 percent in its domestic sales for the month under review at 28,257 units over 26,677 units for the like period of 2011. The overall sales including exports fell by eight percent at 46,886 units from 51,012 units sold in the like period last year.

"The overall market demand is suppressed due to general inflationary trends, high fuel prices and interest rates. Unless any major triggers get activated, market sentiment is not expected to improve very much," said Rakesh Srivastava, vice president sales, HMIL.

While domestic sales grew by 5.9 percent, the company saw a decline in its exports by 23.4 percent at 18,629 units from 24,335 units shipped out in the corresponding month of last year.

Meanwhile, Tata Motors's sales, including exports for October, increased by 13 percent at 67,453 units, compared to the 59,874 units in the like period last year.

"Company's domestic sales of Tata commercial and passenger vehicles for August, 2012 were 67,453 nos., higher by 13 percent, over 59,874 nos., sold in August last year," Tata Motors said in a statement.

Despite the good performance in overall sales, the company's exports in the period under review grew only by four percent at 4,373 units from 4,204 units sold in August, 2011.

Sales of the entry-level compact car Nano shot up by 441 percent last month at 6,507 over 1,202 sold last August.

Another Indian automobile major Mahindra & Mahindra closed August with a 22 percent increase in sales which stood at 45,836 units from 37,684 units sold in August 2011.

M&M's passenger vehicle portfolio including utility vehicles and Verito car registered 39 percent growth selling 21,831 units last month as against 15,664 units sold in August 2011.

Japanese-Indian joint venture Toyota Kirloskar too closed August, 2012 with healthy sales figures which increased by 20 percent over the figures of the corresponding month last year.

In a statement, Toyota Kirloskar said it sold 13,995 units last month, up form 11,679 units sold in August 2011.

Meanwhile, the two-wheeler segment major Hero MotoCorp had a decline of 11.88 percent in its sales for August which stood at 4,43,801 units from 5,03,654 units sold in the corresponding month last year.