Passenger Vehicle sales in India continued its downward spiral in June’19 as automakers curbed factory dispatches to control inventory at their respective dealerships. The retail scenario too wasn’t encouraging and the overall market dynamics was slow as well. The Passenger Vehicle sales saw a double dip of -17.7% in June’19 v/s June’18. The market in a way emulated Maruti Suzuki’s performance which saw a YoY degrowth of -17.2%. The auto industry condition is worsening every passing month and it is high time government pitches in and extend the required support to lift things up. Infact, Car sales slipped for the eighth month in a row in June and did not show any signs of revival.
We had recently presented a report on how irrational the taxation structure currently is; and requires immediate action from the Government to rectify the same. We anticipate that the Government announces some industry friendly policies and reduce the GST in upcoming Budget to support the sector. Companies and SIAM are rightfully seeking a drop in GST rate from 28% to 18% to drive in affordability.
- Market leader Maruti sales fall for fifth consecutive month, OEM registers 14 per cent drop in June 2019 v/s June 2018! The drop in Nexa sales was even scary and dipped -28% in June’19 v/s June’18. The combined YoY fall was -17.2%.
- Hyundai registered one of the lowest degrowth and was possible to the positive momentum for its newly launched Venue. Hyundai also started the dispatches of the electric SUV Kona in June’19.
- Mahindra was the only OEM to register a positive YoY growth! XUV300 have performed well for the OEM and has already shipped 25,000 units from the plant.
- Tata places itself into the fourth spot and its sales fell by -27% in June’19 vis-a-vis the same period last year.
- Even added Glanza volumes couldn’t help Toyota improve its ranking. It stood fifth in the table and degrew -19% YoY.
- Honda registered one the highest YoY sales drop in June’19 and has placed it in the sixth spot in the ranking table. Decelerating Amaze volumes has made the scenario even more difficult for the Japanese major.
Market Shares figures for June’19 –