Auto sales down for sixth consecutive month ::Team Microsec Research

Auto sales down for sixth consecutive month

Auto industry body Society of India Automobile Manufacturers (SIAM),said that it is concerned about overall vehicles sales, which fell for the sixth consecutive month in July.

The fall is not just in passenger cars, whose sales have declined for nine consecutive months now; utility vehicles, two-wheelers and commercial vehicle sales are also down.

category	Jul-13	Jul-13	YOY Change(%)
Passenger Vehicles
Cars	131163	141646	-7.4%
Utility Vehicles	37010	44878	-17.5%
Vans	18066	16595	8.9%
Total PVs	186239	203119	-8.3%
Commercial Vehicles	18611	23229	-19.9%
Light CVs	36690	41779	-12.2%
Total CVs	55301	65008	-14.9%
Two-wheelers
Motorcycles/step -through	809312	821821	-1.5%
Total Two-wheelers	1131992	1132696	-0.1%
Grand Total	1415102	1445112	-2.1%

 Utility vehicles’ sales are down because of the increase in excise duty (30%). Commercial vehicle sales have been declining for the last 17 months because of the slowdown in other industries, such as mining and infrastructure.

SIAM added that this is an appropriate time for the Government to give some relief to the sector by re-starting government purchase of vehicles for different departments, which had stopped in May last year as an austerity measure.

The Government should also re-look at the excise duty, which has substantially risen (12% for cars and 30% for utility and heavy vehicles), road tax, state tax and national calamity contingent duty. The rupee’s depreciation against the Dollar was a major problem.

segment-wise, mini cars (such as Maruti Suzuki’s Alto, A-Star and WagonR and Hyundai Motor India’s Santro and Eon) had done well in July. In the two-wheeler segment, scooters had performed well.

The festival season should bring some cheer as demand should improve from rural areas as well. But, don’t see much of a turnaround to the industry because of that.

Regards,

Team Microsec Research

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