The automobile industry witnessed a total slowdown in domestic sales during May.According to the monthly data released by the Society of Indian Automobile Manufacturers (SIAM), industry growth fell by 6.55% in May as against the same month last. Growth in April had registered a drop of 3.18% year-on-year. Growth of domestic passenger car sales came down to single digit in May at 9.07% at 96,922 units as against 88,863 units recorded during the same month a year ago. The growth was comparatively slower also when compared to the month of April when the segment grew by 11.26%. Maruti Udyog led the pack on the back of a new car launch during the period where it grew by 9.02% at 49,353 units as against 45,267 units posted during the same month last year. Meanwhile, Hyundai grew by just 3.36% at 16,643 units as against 16,102 units posted last year during May.Two-wheelers, believed to be worst hit due to the slowdown of the industry, has fallen by 9.88% for the month of May, at 606,187 units units as against 672,671 units recorded during the same month the previous year. Motorcycles during the same period as gone down by 16% at 477,901 units compared to 571,367 units a year ago.Sales growth of Bajaj and TVS dipped over 15% and 13%, respectively, for the month of May. Hero Honda sales declined by 6% for the same period.In the commercial vehicle category, the medium and heavy bus segment grew at a healthy rate of 59% at 2,721 units, but the goods carrier segment fell by 16%. The light commercial vehicle segment has also slowed down at 16%. Total CV segment grew by 1.1% at 33,280 units.Ashutosh Goel, auto analyst, Edelwiess capital said, "We will witness a softness in demand to continue for the coming two to three months due to tighetning of interest rate and high input costs. A recovery can be expected during the second half of the current financial year".
