Passenger Vehicle Sales Resume Decline In November, SIAM Data Shows

While car sales were down 11 percent over last year to 1.60 lakh units, utility vehicle sales rose 32.7 percent to 92,739 units.

Nishant Sharma @nishantstv

10 Dec 2019, 07:20 PM IST

Maruti Suzuki India Ltd. vehicles are illuminated at a storage plot at night on the outskirts of Ahmedabad, Gujarat, India. (Photographer: Anindito Mukherjee/Bloomberg)

Sales of passenger vehicles resumed their declining trend in November after a blip in the preceding month, indicating automakers are yet to recover from the worst auto slowdown in India in more than a decade.

Domestic passenger vehicle sales fell 0.84 percent year-on-year to 2.64 lakh units in November, according to data released by industry body Society of Indian Automobile Manufacturers. While car sales were down 11 percent over last year to 1.60 lakh units, utility vehicle sales rose 32.7 percent to 92,739 units.

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“The way industry responded showed there is some recovery but it is too early to say if the worst is behind us,” Rajesh Menon, director general of SIAM, said. Commercial vehicles and two-wheelers, he said, continue to be a concern for the industry. “Commercial vehicles and two-wheelers are continuing to show negative growth, which means infrastructure is yet to pick up and rural demand is still lagging.”

WATCH | Too early to say if the worst is behind us: SIAM’s Rajesh Menon

The auto sector—which according to McKinsey & Co. employs millions of people directly or indirectly and contributes more than 7 percent to India’s gross domestic product—has been grappling with slowing sales since the Diwali festival season last year.

That indicated a deepening slowdown in Asia’s third-largest economy, growing at its slowest pace in more than six years. The automakers were forced to layoff contract workers and dealerships shut showrooms. While deep discounts and aggressive promotions lifted sales during this year’s festive season in October, they were lower than last year.

Also Read: In Times Of Auto Slowdown, Kia Motors Is Shaking Up India’s UV Market

Here’s a segment-wise look at auto sales in November:

Scooter sales dropped 11.8 percent over last year to 4.60 lakh units.
Motorcycle sales declined 14.9 percent year-on-year to 8.94 lakh units.
Two-wheeler sales fell 14.3 percent year-on-year to 14.11 lakh units.
Commercial vehicle sales fell 15 percent over last year to 61,907 units.
Three-wheeler sales rose 4.45 percent to 55,778 units.