The year 2019 is proving to be a year of decline for auto manufacturers.June is third month in row when when auto industry has reported double digit decline in sales.
Due to lack of demand, dealerships of the automakers are soaring with unsold cars and bikes that forced big OEMs to unscheduled shut down the plants during last two months.
Maruti Suzuki India Limited (MSIL) posted double-digit decline for the third consecutive time in the ongoing fiscal year. The maker of the popular models like Swift, Dzire, and Baleno has reported 16.7 per cent drop in domestic sales at 113,031 units in June 2019 compared to 135,662 units in June 2018.
Similarly the other barands like Hundai, Tata motors, Toyta, Honda have shown big decline in June sales.
Only Mahindra & Mahindra’s (M&M) passenger vehicle segment recorded 4 per cent growth in the month of June 2019 backed by the launch of new vehicle in SUV space.
The two wheeler manufacturers Bajaj auto & TVS motors along with others also clocked the negative number.
Passenger vehicle sales in June 2019
|OEMs||June 2019||June 2018||% Change|
|Maruti Suzuki||113,031||135,662||– 16.68|
|Hyundai India||42,007||45,314||– 7.30|
|Mahindra & Mahindra||18,826||18,137||3.80|
|Honda Cars India||10,314||17,602||-41|
Two wheeler sales in June 2019
|Bajaj Auto||229,225||234,576||– 2.28|
In addition the the commercial vehicle segment is also in no better shape as all the big manufacturers like Ttat, Mahindra & Ashok Leyland have big drop in sales. One of the main reasons for the decline is said to be the revision in load carrying norms or revised axle load norms in July 2018, which resulted in a 15-20% increase in capacity of CV parc.
Commericial vehicle sale in June 2019
|Mahindra & Mahindra||16,394||19,229||– 14.74|
|Ashok Leyland||12,810||15,792||– 18.88|
The negative sales in the auto sector for almost last eight months are also impacting the motor insurance business of the various insurers. The public sector insurer New India Assurance co. has suffered 6% decline in motor business in first qtr. ending June 2019.