Passenger vehicle sales drop the most in 6 years in April; Maruti worst hit

Passenger vehicles sales in India in April dropped the most in five years, shows an aggregate data comprising India’s top six manufacturers. Cumulative domestic sales of Maruti Suzuki India, Hyundai Motor India, Mahindra and Mahindra, Tata Motors, Honda Cars India and Toyota Kirloskar fell 16.2 per cent to 227,429 units over a year-ago period, according to the data released by the firms on Thursday. The volumes were dragged down by Maruti Suzuki that saw a steep decline of 20 per cent in its monthly sales year-on-year. 

One in every two passenger vehicles sold in India come from Maruti’s stable. Sales at other firms also crimped during the month over a year ago-period as they remained cautious of stock piling at dealerships. Indian automakers count dispatches to dealers as sales. 

While dispatches at Hyundai and Mahindra slipped 10 and 9 per cent, respectively. Tata Motors and Toyota Kirloskar saw a decline of 26 and 22 per cent, respectively. Honda was the only firm that reported 26 per cent growth. The company said sales had largely been driven by the Amaze sedan. Firms expect sales to improve after the elections but are preparing a slew of factors, including a switch-over to stricter regulation on emission and safety are expected to cause disruption in the market.