Honda Cars India today said its sales have tumbled by 20-30 per cent in retail market following the demonetisation drive, but allayed fears of retrenchment in the sector.
"Auto sales have dipped by 20-30 per cent in retail market since November 9. But, I don't see retrenchment in the sector as things are going to improve shortly," Honda Cars India senior VP and director Raman Kumar Sharma told reporters here.
He said two-wheeler sales are picking up and he was optimistic that auto sales will gather steam shortly.
Asked whether his company will bring down production, he said sales will govern it. However, he said they wish to maintain the last fiscal's sale of 1.92 lakh units in this fiscal.
"We have sold around one lakh vehicles so far in this fiscal year," he added.
Sharma said consumer sentiment and interest rate will govern sales in the future, and expressed optimism that next year is going to be firm.
He said the sale of diesel models has decreased due to pollution concerns and bridged gap between the price of petrol and diesel vehicles.
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