ICRA draws attention to India auto sales decline, can new launches boost Q3 and Q4
ICRA, the Indian independent and professional investment information and credit rating agency has shown concern for falling auto sales in the country. This fall in sales is noted both where passenger and commercial vehicles are concerned and spans the four wheeler, two wheeler and three wheeler segments since the start of this year.
Passenger vehicle sales dipped 8.3% while utility vehicle sales were down 17.5% YoY. Similarly, commercial vehicle sales fell by 14.9% in July this year, marking the seventh consecutive month of declining sales. It was factors such as higher excise duty, rising fuel prices, rising interest rates and the economy itself in turmoil that caused these falling sales figures.
Two wheeler sales did marginally better with volume decline of 0.1% YoY while it was scooter sales that saw an increase by 9.8%. Three wheeler sales within the country fell by 6.1% though exports in this category increased by 17.6% YoY. Of all the auto majors in India, it was only Maruti Suzuki India Limited that recorded positive volume growth to the tune of 5.8% YoY in July 2013. Domestic sales volumes of Hyundai, Tata Motors, M&M and Toyota showed a decline while Honda and Ford showed more positive results, largely due to the recently launched Amaze and EcoSport. Tractor sales growth is also continuing on a more positive note primarily due to healthy monsoons across the country.