New Delhi: The automobile sector witnessed a significant downturn in August as leading companies Maruti Suzuki, Hyundai, and Tata Motors reported a decline in sales. The reduced demand in the car market led to a decrease in supply and dealership levels for these companies.
Maruti Suzuki’s Sales Drop
Market leader Maruti Suzuki India (MSI) saw its total domestic passenger vehicle segment wholesale sales fall by 8% to 1,43,075 units in August, down from 1,56,114 units in the same month last year. Sales of small cars like Alto and S-Presso dropped to 10,648 units, compared to 12,209 units a year ago.
Compact Cars Take a Hit
Sales of compact cars, including popular models like Baleno, Celerio, Dzire, Ignis, and Swift, declined by 20% to 58,051 units, from 72,451 units in August of the previous year. However, sales of utility vehicles such as Grand Vitara, Brezza, Ertiga, Invicto, Fronx, and XL6 increased to 62,684 units, up from 58,746 units last year.
Reduced Vehicle Supply
Eeco sales stood at 10,985 units last month, down from 11,859 units a year ago. Sales of the light commercial vehicle Super Carry were 2,495 units, compared to 2,564 units in the same month last year. MSI Senior Executive Officer (Marketing and Sales) Partho Banerjee announced that the company reduced vehicle supply by 13,000 units in August.
Inventory Levels
Banerjee noted that the company’s inventory level was 38 days at the beginning of August, which has now decreased to 36 days. He expects dealers to maintain 36 days of stock during the festive season.
Hyundai and Tata Motors’ Performance
Hyundai’s domestic sales fell by 8% to 49,525 units in August, down from 53,830 units in the same month last year. Similarly, Tata Motors’ passenger vehicle segment wholesales declined by 3% to 44,142 units, compared to 45,513 units in August last year.
Mixed Results for Other Automakers
Kia India reported a 17% year-on-year increase in wholesales, reaching 22,523 units in August, up from 19,219 units last year. Toyota Kirloskar Motor’s total wholesales grew by 35% to 30,879 units, compared to 22,910 units in the same month last year, including both domestic and export figures. JSW MG Motor India’s retail sales increased by 9% year-on-year to 4,571 units, up from 4,185 units in August 2023.
Two-Wheeler Sector
In the two-wheeler sector, TVS Motor Company’s total sales grew by 13% to 3,91,588 units in August, compared to 3,45,848 units in the same month last year.
The overall decline in sales for major automakers highlights the challenges faced by the automobile industry amid fluctuating demand and inventory management issues.
