Automotive sector faces slowdown as buyers await GST rate cuts
What's the story
Leading Indian automakers, including Maruti Suzuki, Hyundai, Mahindra & Mahindra, and Tata Motors, have reported a decline in vehicle dispatches to dealers for August. The dip is largely attributed to a slowdown in demand as many potential buyers are postponing their purchases. They are waiting for the implementation of the new Goods and Services Tax (GST) regime, which could bring down vehicle prices.
Maruti's performance
Maruti Suzuki sees 8% decline in dispatches
India's largest carmaker, Maruti Suzuki, reported an 8% year-on-year decline in passenger vehicle dispatches in August. The company dispatched 1,31,278 units last month against 1,43,075 units in the same month last year. However, sales of compact cars such as Baleno and Swift increased to 59,597 units from last year's 58,051 units.
Hyundai's figures
Hyundai and Mahindra also record diminished demand
Hyundai Motor India reported an 11% year-on-year decline in domestic dispatches to dealers, totaling 44,001 units last month. This is a sharp drop from the 49,525 units dispatched in August last year. Meanwhile, Mahindra & Mahindra's utility vehicle sales fell by 9% to 39,399 units last month against the same period last year when they sold 43,277 units.
Tata's numbers
Tata Motors witnesses a 7% decline in passenger vehicle dispatches
Tata Motors also witnessed a 7% decline in passenger vehicle dispatches last month. The Mumbai-based automaker sold 41,001 units as compared to last year's 44,142 units in August. Meanwhile, Toyota Kirloskar Motor (TKM) reported a marginal increase of 2% in domestic wholesales at a figure of 29,302 units last month.
Two-wheeler market
2W segment saw mixed response
In the two-wheeler segment, Bajaj Auto reported a 12% decline in domestic sales to 1,84,109 units in August. This is compared to last year's figure of 2,08,621 units. On the other hand, TVS Motor Company recorded a whopping 28% year-on-year increase in domestic two-wheeler sales at an impressive figure of 3,68,862 units during this period. Royal Enfield, a leading motorcycle manufacturer, reported an impressive 57% surge in domestic sales last month.