The automobile industry continued its march into recession with sales sliding for the straight month in August. With market leader Maruti Suzuki and Tata Motors in the red, Hyundai’s double digit growth was not enough to resurrect the gloomy picture.
Sales declined by over 4 per cent during the month after dropping 1.7 per cent in July. With interest rates still on a high, little seems to be going in favour of the industry. A good festive season starting next month is the industry’s only hope.
“The signs are ominous. Input costs have increased which resulted in prices of cars going up even in a situation where interest rates are already high,” said Pradeep Saxena, senior vice-president, TNS Automotive.
Beginning later this month, almost 10 new cars are expected to hit the roads.
The dip in sales in August, was mainly on account of Maruti Suzuki India and Tata Motors whose numbers declined by over 10 per cent during the month. Maruti sold only 46,811 cars compared to 52,055 units in the same month last year while Tata Motors notched up 12,216 units against 13,588 units in the same month last year.