In October, India’s car sales reached the lowest level this year. Even the festive month that usually assures increased car sales could not cover the negative impact of loans, increased fuel price and labor unrest at market leader Maruti Suzuki. Most of the carmakers registered negative impacts compared to a year ago and are not expecting a sudden improvement in the near future.
Maruti Suzuki’s sales decreased with 52% to 51,458 units, compared with 1,07,555 cars sold in October 2010. Also, it reported a 60% profit decreased in July-September profit. The company proffered to blame for the results the recurring workers’ strikes which caused an output loss of about 40,000 cars.
Hyundai reported a 5% diminishing in the domestic sales, reaching 33,001 units, while the exports fell 12% to 15,325 units. Hyundai’s marketing & sales director Arvind Saxena stated: “Traditionally, sales get a boost in the festival season, but this year the sentiment has been tepid. We don’t expect any major upswing in the near future as the challenging economic environment is affecting the industry.”
India’s biggest vehicle manufacturer, Tata Motors reported that the total sales, including commercial and passenger vehicles, reached 68,009 units, 5% more than in October 2010. The domestic sales were 63,838 vehicles, 9% more than same month last year.
Mahindra & Mahindra registered a 10% sales increase to 18,756 units, due to increased utility vehicles demand from the rural markets.
Honda Motorcycle and Yamaha reported 20% increase in October sales.
Nissan Motor India announced yesterday a two fold (164%) increase in sales for the month of October, especially due to the sales driven by the Sunny Sedan, reaching 2,990 vehicles sold.