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The automobile industry did not start on a positive note this fiscal year as the passenger car market leader Maruti Suzuki India (MSIL) reported a decline of 20 per cent year-on-year (YoY) in its domestic sales to 1,31,385 units in April from 1,63,434 units in corresponding month last year.
MSIL has more than 52 per cent market share in the country’s passenger vehicles segment and its fall in sales would mean fall for the whole industry numbers.
And, as the country is going through a phase change from Bharat Stage (BS)-IV to BS-VI, the market is expected to be more challenging till this fiscal-end.
Hyundai Motor India also reported a decline of 10 per cent YoY to 42,005 units in April from 46,735 units in the year-ago month.
Honda Cars India, however, reported a growth of 23 per cent in its sales to 11,272 units in April as against 9,143 units in April 2018.
“HCIL’s April sales growth is primarily due to lower base effect, as there was no Amaze in corresponding month last year during model runout. The ongoing elections and overall subdued market sentiment continues to affect the sales momentum,” Rajesh Goel, Senior Vice-President and Director, Sales and Marketing, Honda Cars India, said.
Two-wheeler segment
In the two-wheeler sector too, Honda Motorcycle & Scooter India (HMSI) reported a drastic fall in sales in April to 4,32,756, which is a decline of 32 per cent YoY as against 6,35,811 units in corresponding month last year.
Royal Enfield has reported a decline of 21 per cent YoY in its sales to 59,137 units during April as against 74,627 units in same month last year.
The market leader Hero MotoCorp will be announcing its sales report on Thursday. Tata Motors and Mahindra & Mahindra will also announce their sales on Thursday.
Speaking to mediapersons, Niranjan Gupta, Chief Financial Officer at Hero MotoCorp said the company expects growth to come back in second half of the current fiscal.
He said factors like pre-buying before BS VI emission norms kick in, festive season and forecast of a normal monsoon and easing of liquidity would help the industry recover during the second half of the current fiscal.
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