Car sales in slow lane; Maruti, Honda, Mahindra, Toyota see drop in sales
By: FE Bureau | New Delhi | Updated: June 2, 2019 6:53:16 AM
l Maruti’s May sales drop by 25% y-o-y
Passenger vehicles sales in May continue to decline for top carmakers due to weak retail demand.
Sales at Maruti Suzuki India, Mahindra & Mahindra, Honda Cars India and Toyota Kirloskar Motor India dropped up to 28% year-on-year during May over the same month a year ago, as companies curtailed dispatches to dealers amid slowing sales.
While Maruti Suzuki’s PV sales in the domestic market fell sharply by 25.1% in May, for Honda the slip was 28% over last year and Toyota it was 7% over last year, the companies said on Saturday.
M&M reported 1% y-o-y decline in monthly sales in May. The automakers count dispatches to dealerships as sales. The companies remain cautious of stock piling at dealerships. During the month, the largest domestic automaker, Maruti Suzuki, delivered 1,21,018 units as compared to 1,61,497 units in May 2018. This decline, for the third consecutive month, came as buyers deferred purchases due to increased cost of finance and ownership.
Sales of mini cars, comprising the Alto and old Wagon R, fell 57% y-o-y during May 2019 over last year while compact segment including Baleno and Dzire registered a dip of 9% y-o-y.
The mid-sized sedan Ciaz sales contracted by 11% y-o-y last month.
Toyota dispatched 12,138 units to dealerships during May as compared to 13,113 units exactly a year ago. Honda’s domestic sales declined from 15,864 units in May 2018 to 11,442 units last month. Utility vehicle manufacturer M&M sold 20,608 units in May 2019 against 20,715 units in May 2019.