The Indian auto industry is observing a downward trend in sales for two consecutive moths for the first time in last three years. In August, the sales went down by 4.36%.
According to the data of the Society of Indian Automobile Manufacturers (SIAM) in the August of 2007, the sales of domestic passenger cars stood 98,893 units which became 94,584 units at present. Maruti Suzuki India Ltd. and Tata Motors are the two major companies suffering the sales slump.
In August, sales of Maruti Suzuki cars went down by 10.07% to 46, 811 units compared to 52,055 units in 2007. Tata Motors saw a sales slump of 10.10% to 12,216 units compared to 13,588 units in 2007.
The only exceptional is Hyundai Motor India Limited. The South Korean auto maker is observing an impressive growth. The Hyundai i10 sales observed a growth of 34.08% at 21,067 units compared to 16,115 units in 2007.
Analysts are saying that the sales slump is caused by auto makers’ inability to compromise with the ongoing financial pressure and high interest rates. As the festive season is coming, automakers are expecting better sales in the coming month.
Sales of two-wheeled vehicles on the other hand went up by 15.9% in August. The August bike sales saw an increase of 28.53% at 2,84,752 units compared to 4,18,702 units in 2007. Hero Honda single handedly caused a huge turn around in the two-wheel market.