India auto sales increase in August 2013 is circumstantial
Rising fuel prices, a depreciating currency and other economic constraints have all taken the toll on the economy in general and the auto sector in particular. While this sector has been experiencing 9 consecutive months of falling sales, the month of August has seen a marginal positive turn of events.
Auto majors such as Tata Motors and Mahindra & Mahindra also reported sales declines in August along with Toyota Kirloskar Motors which is also reporting a 6% decline in total sales for the month of August. These challenges are expected to continue with the weakening rupee leading to increased inflation which has also had an adverse effect on cost of operations and increase in import of spares and accessories. Auto majors are mulling increase in prices but are skeptical to increase the same in view of the upcoming festive season wherein they expect to make good their losses and bring some cheer to their sales charts.