Car sales show slowdown’s reached factory gates

Of the three big car makers, only Maruti Suzuki India reported robust domestic wholesale numbers for March — Hyundai’s sales were up just a per cent, or 321 cars, while Tata Motors’ passenger vehicle sales declined.

Since the top three car makers account for at least 7 of every 10 cars sold in the country, it is reasonable to assume from their March performance that the slowdown has spread to even factory dispatches. Retail sales, or sales from car showrooms to dealers, have been facing the heat for the last two months.

At 110,424 units, Maruti’s sales domestic sales were up 38.8%, but its exports declined 26.1% to 11,528 units. Hyundai’s sales stood at 31,822 units, but exports were down 0.9% to 23,730 units. Tata Motors’ domestic passenger vehicle sales stood at 27,678 units.

Mahindra & Mahindra’s passenger vehicle sales were up 18% at 17,320 units.

Smaller players such as Toyota, Ford, Skoda, Volkswagen, which are still riding the wave of new launches, managed to post robust growth last month. Even two luxury marques, Mercedes Benz India and Audi India, reported robust wholesale growth during the month. Toyota reported its highest ever sales at 9,726 units, up 41% year on year, on bumper sales of Etios sedan. Ford’s sales rose 10.6% to 10,485 units, led by the Figo. Volkswagen reported more than nine-fold growth to 8,095 units riding on the Polo and Vento models. Mercedes had its best ever monthly sales at 833 units, nearly double year on year, whereas Audi India’s sales more than trebled to 681 units. Sales of Honda Siel Cars India, however, fell 39.68% to 3,576 units.

Whether the slowdown is temporary or deeper than perceived, only the June quarter will tell.

Surprisingly, two-wheelers are untouched by the apparent slowdown in auto sales. Market leader Hero Honda reported a 24% increase in wholesale numbers at 515,852 units, whereas TVS Motor Co posted a 27% growth to 186,781 units. Yamaha Motor’s sales jumped 44.3% to 25,784 units, while Suzuki’s numbers were up 26% at 27,361 units. Sales of Honda Motorcycle and Scooter India, however, rose just 1.5% to 147,301 units.