Amidst the ongoing slump in the Indian automobile sector, The new car sales for September have indicated a marginal revival for car makers even as the figures continue to contract on a year-on-year basis.
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Here are some highlights of the report:
- In the month of September, Maruti Suzuki reported a 15% jump in sales from 1.2 lakh units to 1.06 lakh units in the month of August. Though, throughout the year the company saw a 24% fall.
- Maruti Suzuki, who is the market leader in the passenger vehicle as well as the commercial vehicle segment saw its seventh straight month of contraction in its passenger vehicle sales with sales falling an approximately 27% to 1.1 lakh units sold in the last month. As compared to August new car sales grew by 19%.
- During a recent interview, the company’s spokesperson said “The is expecting sales to pick-up in the festive season and also pointed out that a good monsoon and recent government announcements should help in reviving the Indian automobile sector“
- Many automakers are hoping that sales will pick-up in the on-going festive season unlike 2018 where the figures had gone much lower than expected. During this time, car manufacturers were unable to clear their previous year’s stocks even in February despite sharp discounts.
- Bajaj Auto’s total sales slumped down 20% to 4.02 lakh units in the month of September compared to 5.02 lakh units in 2018. However, the sales were 3% up from 3.9 lakh units sold in August.
- The fall in the consumer demand was eventually led by a rural slowdown, as well as tight financing conditions which have adversely affected car sales across many manufacturers. This has also led to a massive job loss in the Indian automobile sector as companies cut back production due to rising stock levels and lukewarm demand.
- In a recent interview, Maruti Suzuki’s Executive Director Shashank Srivastava commented, the slowdown in the Indian economy and rising prices of the vehicles due to regulatory requirements.