Auto Sales May Hit A Bump In August
Passenger vehicle sales growth is expected to slow down in August because of a delayed festival season and Kerala floods, according to BloombergQuint’s survey of 30 dealers across the country.
Sales of cars and utility vehicles are likely to remain flat after falling for the first time in nine months in July as automakers increased prices to offset higher commodity costs and a weaker rupee, according to the survey. That’s particularly negative for Maruti Suzuki India Ltd., the nation’s largest carmaker, which is a net importer.
- Increased competition in the entry level segment is likely to hurt the nation’s largest two-wheeler maker.
TVS Motor And Royal Enfield (Eicher Motors)
- Weak Onam sales because of Kerala floods to impact volumes.
- Aggressive pricing in the entry-level segment and an unusually weak August last year to aid growth.
Momentum Stays With Trucks
Sales of trucks are expected to continue growing in August, helping the largest commercial vehicle maker Tata Motors Ltd. and Mahindra and Mahindra Ltd. offset the slowdown in the passenger vehicle segment. Truck sales remain buoyant on demand driven by the government’s infrastructure push, private consumption and improved industrial activity.