Domestic car sales slump continues

Automakers sent fewer vehicles for despatch to dealers in June amid poor sentiment and lacklustre demand, shows monthly sales data released by companies on July 1.

Combined sales of top six passenger vehicle makers dropped 16.3 per cent to 206,115 units compared to the same month a year ago.

Led by Maruti Suzuki that sells one in every two passenger vehicles, the June quarter has been the worst historically for passenger vehicle makers.

Maruti’s sales during the three-month period fell 21 per cent year on-year.

This is the sharpest drop in quarterly volumes posted by the local arm of Suzuki since December quarter of 2010-11 financial year when its sales had dropped 29 per cent.

With the exception of M&M that reaped benefits from launches like the XUV3OO and reported a 4 per cent growth in sales, most of the manufacturers reported double-digit decline in sales in June.

Mirroring the slowdown, June despatches at Maruti fell 17.2 per cent to 111,014 units as the maker of Baleno and Brezza models saw sales plummet across all the segments.

Amid weak on-ground demand, it has been cautious in shipments to dealers to avoid stock-piling.

Hyundai Motor India saw sales drop 7.3 per cent to 42,003 units over a year ago, it said.

Tata Motors saw a 27 per cent year-on-year fall in despatches. Its volumes skidded to 13,351 units against 18,213 units last year. The firm attributed it to poor customer sentiment due to liquidity crunch.

Honda Cars India, which had managed to buck the trend in the last few months, too, was in the grip of a slowdown in June and saw sales collapse by 41 per cent to 10,314 units during the month over a year ago.

(Agencies)