Car sales down in May on Malamas effect

Malamas, the supposedly inauspicious month included in the Hindu lunar calendar every 2 to 3 years, seems to have taken the gas out of car sales in May this year.

Maruti Udyog, which enjoys a share of about 55 per cent in the domestic car market, today reported single digit sales growth. The sales grew 9.9 per cent to 55,952 units during the month, the slowest in 10 months. They had grown by 26 per cent in May 2006 and 17 per cent in April this year inspite of the rising interest rates.

The worse news came from Tata Motors. The largest commercial vehicles maker and second largest passenger vehicles maker reported a sales decline of 4 per cent. The company had reported 45 per cent increase in sales in May 2006 and 11 per cent in April this year.

Skoda India reported a decline of 23 per cent. The sales reports of the two biggest two-wheeler companies, Hero Honda and Bajaj, provided no respite. The sales of Bajaj Auto's two-wheelers declined 15 per cent to 167,008, its fourth straight decline in monthly sales.

Hero Honda's sales declined 6 per cent to 285,109 units. The company says it has hung on to a 50 per cent share of the market, even as the two-wheeler market has shrunk by double digits.

TVS Motor, the third-biggest motorcycle maker, said its sales in May fell 13 per cent to 1,08,151.

However, General Motors India registered 56 per cent growth in sales and M&M's sales grew 49.5 per cent in May this year, due to the recent launch of compact car Spark and Logan, a sedan, respectively. These were not a part of the corresponding month's base.