Automobile Sector Records Worst-Ever Sales

Submitted by Ketan Sharma on Thu, 12/11/2008 - 10:22

The ongoing global slowdown has adversely impacted the automobile sector, following low demand and tight monetary policy. Indian automobile industry recorded the worst ever sales in history, registering a decline of 17.98 per cent in November. Both the commercial and passenger vehicle segment witnessed the decline in sales, probably due to high auto loans and fears of further recession.

The recent data released by the Society of Indian Automobile Manufacturers (SIAM) revealed that a total of 7.11 lakh units were sold in November as compared to 8.67 lakh units in the same month last year. Commercial vehicle segment registered the highest ever decline of 49.52 per cent with sale of 20,637 units as compared to previous sale of 40,879 units.  

Passenger car sale also declined by 19.38 percent with sale of 83,059 units against 1.03 lakh units. Out of total 13 car makers, 8 posted negative growth. The sale of the largest car maker, Maruti Suzuki, declined to 36% with sale of 43,258 vehicles. Hyundai Motors has reported a 23% sales drop, paving a way for further cut in production. Senior vice-president (marketing & sales), Hyundai Motors, Arvind Saxena said, "We are awaiting low interest on auto loans. We have launched special schemes for government employees whose salaries were recently increased.''

Two-wheeler segment also reported sales decline of 14.68 per cent. A total of 5.67 lakh two-wheeler units were sold in the reporting period of November as compared to 6.65 lakh units.


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