Car Sales In India At 41% Low | August 2019


Car sales in India were already struggling with the extreme downfall reported in the past few months. The month of August proved to be even worse for Indian Auto Manufacturers. August 2019 reported the usual downfall in the sales number and the graph was seen to dip further from the July stats. The Indian Automobile sector has been suffering a lot from the past few months due to the major announcements made by the government.

What are the reasons behind the decline in new car sales?
What is the present position of the automobile industry in India?

BS6 is yet to come and the Indian audience awaits its implementation. People are hesitating to buy new vehicles at this time of the year as they are unaware of how the new rules will be implemented and what effect they will have on the Indian automotive market. This is why the Indian Automotive market has been affected so much that the month of August 2019 reported the worst ever fall in the car sales since 1988. This month has experienced the steepest fall in the history of car sales ever recorded by the Society of Indian Automobile Manufacturers (SIAM).
The below-given graph shows the segment-wise sales recorded in the month of August’19

Image Courtesy: SIAM

Across India, the automotive sector has been caught in a downward spiral which started in the last quarter of 2018 and has been intensifying since. The demand for new cars in India has dropped so much that the plants had to observe “No Production Days”. Many auto manufacturers are still planning to observe such production halts in the future.

Major Car Manufacturers Are Halting Car Production. Here’s Why!

The major Indian auto manufacturers like Maruti Suzuki, HMIL, Honda Cars India, Tata Motors and Mahindra & Mahindra have witnessed their sales go extremely down this month. All of them now have their fingers crossed and hope to experience some surge in the upcoming festive months.

  • The total auto sales number recorded as per the data of August 2019 was 9,732,040 which is 15.6% lesser than the 11,570,401 units sold back in August 2018.
  • MSIL experienced a 36.31% fall in sales and sold around 93,173 units in August 2019 as compared to the 1,45,895 units sold previously in August 2018.
  • Hyundai Motor India Limited recorded a downfall of 16.58% with a sales record of 38,205 units which was previously 45,801 units in August 2018.
    Here are the individual brand sales for the month of August 2019 compared to the previous year’s sales of the same month:
S No. Brand Sale in August 2018 Sale in August 2019 Decrease Percentage Decrease
1. Maruti Suzuki India Ltd. 1,45,895 93,173 52,022 36.1%
2. Hyundai Motor India Ltd. 45,801 38,205 7,596 16.58%
3.  Honda Cars India 8,291 17,020 8,729 51.3%
´4. Tata Motors 7,316 17,351 10,035 58%
5. Mahindra & Mahindra 19,758 13,507 6,251 32%
6.  Toyota 10,701 14,136 3,435 24.3%
7. Ford 8,042 5,517 2,525 31.40%
8. Renault 6,557 5,704 853 13.01%
9. Skoda 1,330 1,164 166 12.48%
10. Volkswagen 3,334 2,306 1,028 30.83%

Though the already existing car makers experienced a downfall in sales, it has been surprising to observe that the new players in the market have earned commendable sales numbers. Kia Motors with only 1 vehicle in its lineup, the Seltos has managed to sell 6,236 units in the month of August’19.

The fact to be noted here is that the Seltos was launched around 20th August and managed to earn such a great response in just 10 days! MG  has also been able to set a benchmark in the Indian market with its Hector recording a sale number of 2018 units which is certainly great for a newcomer facing competition from the already established giants.

Can the automobile industry recover from this decline in growth?

  • The automakers have great hopes from the upcoming festive season during which they might be offering huge discounts to the buyers to encourage faster sales and greater sale numbers.
  • The government has now allowed the registration on BS4 vehicles till the last day before BS6 comes into action. This has provided around 3 extra months to the manufacturers to boost the sales and get rid of their stock. Other steps taken by the government will also prove to be of great relief to the industry.

Must Read: Huge Relief For Automobile Sector | From BS6 to Electric Vehicles!

August 2019 has been a gloomy month for the automotive industry in India. Car sales in India has dropped by a significant number. Plants have shut production, stocks are piling up and liquidity is nowhere to be seen. In the upcoming months, we expect certain new and attractive schemes from the manufacturer that will attract the customer towards them.

The manufacturers need to come up with something to help themselves in the area of vehicle sales otherwise, the auto industry in India will continue to experience its bad days with jobs being lost, production being shut and stocks piling up in the plants. The automakers and the Indian audience hope to experience an improved situation soon! The only one who can help us achieve that is the government- through their schemes and plans. Let’s see what the government does to improve the current situation.
Hope to see the bright side soon!