PUNE: Car and tractor manufacturers continued to report decline in sales in April, indicating a slowdown due to multiple factors, including tepid demand in Asia’s third largest economy.
Automakers Tata Motors and Mahindra and Toyota on Thursday reported decline in sales for April, which is 10th month of slowdown for the Motown.
Passenger vehicle sales at Tata Motors, India’s biggest automaker by revenues, fell 26 per cent to 12,694 units last month from 17,235 units sold in April 2018.
“The industry has recorded de-growth for the 10th consecutive month. Weak consumer sentiments are reflected in this demand de growth and we have also been impacted,” Mayank Pareek, President-Passenger Vehicles at Tata Motors, said.
Similarly, passenger vehicles sales at Mahindra, India’s second biggest utility vehicle maker, dropped 8.94 per cent to 19,966 units in April as against 21,927 units sold in the year-ago period.
Rajan Wadhera, President, Automotive Sector at Mahindra and Mahindra said the ongoing elections had subdued the purchase sentiment during April.
“This, according to us, is a temporary phenomenon. We believe, following the elections the auto industry will see a revival in consumer demand. Supported by a normal monsoon, we are confident of seeing higher sales in FY20,” he pointed out.
Sales at Toyota Kirloskar Motor also declined by 22.43 per cent last month. It sold a total of 10,112 vehicles compared with 13,037 units it sold in April 2018.
“The industry is currently experiencing a slowdown due to uncertainty of general elections that looms over the market and this slow pace is expected to continue until the new government is formed,” N Raja, Deputy Managing Director at Bangalore-based Toyota Kirloskar Motor, said.
Consumer sentiments have been dampened due to several factors like tight liquidity, high insurance, and high costs, he pointed out.
On Wednesday, India’s top two carmakers, Maruti Suzuki and Hyundai Motor India, which command nearly 70 per cent market share, had also reported a decline in their domestic sales in April.
While Maruti Suzuki reported 17.2 per cent decline, Hyundai posted a drop of 10 per cent in domestic sales in the first month of the 2019-20 fiscal.
Sales of tractors at Mahindra also fell 8 per cent at 27,495 units, as compared to 29,884 units in the year-ago period,
“We expect that the prediction of a normal southwest monsoon will bring positive sentiment and boost tractor demand,” Rajesh Jejurikar, President for Farm Equipment Sector at M&M said.
In the two wheeler segment, Bajaj Auto said its domestic motorcycle sales were up 2.5 per cent at 2,05,875 units in April as against 2,00,742 units in the year-ago month.