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Auto sales crash to all-time low
 
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January 12, 2009 13:40 IST
The struggling Indian automobile industry on Monday reported yet another worst ever performance with overall domestic sales declining by 18.2 per cent in December 2008, as commercial vehicles and two-wheelers sales crashed heavily.

The total vehicle sales in the domestic market stood at 5,97,622 units in December last year as against 7,30,603 units in the same month in 2007, according to the Society of Indian Automobile Manufacturers (SIAM).

The previous worst overall sales was in November 2008 with a decline of 17.98 per cent at 7,11,281 units as against 8,67,243 units in the same month previous year.

The decline in sales was led by the beleaguered commercial vehicles (CV) segment, which recorded a dip of 58.28 per cent at 17,920 units in December 2008 as against 42,961 units in the corresponding month the previous year.

Passenger cars segment performed relatively better than expected despite a decline of 6.9 per cent in December 2008 to 82,105 units, from 88,272 units a year ago. SIAM had expected a 15 per cent decline.

Motorcycle sales in the country, during the month, was down by 22.9 per cent at 3,35,820 units, against 4,35,925 units in the year-ago period, while total two-wheeler sales were down by 15.4 per cent at 4,61,302 units, compared with 5,45,485 units in the same month previous year.

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SIAM, which has updated its records, said this is the worst sales performance by the CV segment in 11 years.

"The previous worst ever sales in the CV segment was in July 1997, which witnessed a decline of 51.76 per cent," SIAM senior director Sugato Sen said.  He said the two-wheeler segment has recorded a worst performance with a 15.4 per cent decline in sales as against a 14.68 per cent decline in November last year.

Sen said the government's stimulus package for the auto sectors, specially the CV segment has not yet yielded results and "2009 is going to be even tougher".

In the passenger cars segment, market leader Maruti Suzuki India reported a decline of 7.5 per cent at 46,262 units in December 2008, as against 50,056 units in the same month a year ago.

Rival Hyundai Motor India, however, reported a jump of 19.3 per cent at 15,600 units as against 13,069 units in the corresponding month previous year. Tata Motors [Get Quote] car sales declined by 15.2 per cent at 8,422 units compared with 10,876 units in the year-ago month.

In the motorcycle segment, market leader Hero Honda Motors [Get Quote] saw a dip of 12.7 per cent at 1,97,364 units as against 2,26,103 units in December 2007. Bajaj Auto's [Get Quote] bike sales crashed by 55.3 per cent at 61,546 units as against 1,37,980 units in the same month previous year.

Chennai-based TVS [Get Quote] Motor also reported a decline of 38 per cent at 23,832 units in December as against 38,767 units in the year-ago period.

Scooter segment was the exception recording a growth of 16.4 per cent at 90,247 units as against 77,494 units in December 2007.

Honda Motorcycle and Scooter India sales were up by 19.1 per cent at 56,186 units as compared to 47,168 units in the year-ago month. Hero Honda's sales stood at 12,363 units, up 49 per cent.

The three-wheeler sales were down by 28.9 per cent at 19,048 units as against 26,823 units in December 2007.

In the commercial vehicles segment, heavy and medium commercial vehicles sales crashed by 71.1 per cent at 6,914 units as compared with 23,996 units in the year-ago month.

Light CV sales also dropped 41.9 per cent at 11,006 units as against 18,965 units in the same month previous year.


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