While sales of mini cars Alto and old WagonR dropped 69.3% , compacts fell 22.7%.
The country’s largest carmaker Maruti SuzukiNSE 1.88 % Thursday reported 36.2% decline in passenger vehicle sales in the domestic market at 98210 units for July.
While sales of mini cars Alto and old WagonR dropped 69.3% to 11,577 units, those of compacts (Swift, DZire, Baleno, Ignis, Celerio and new WagonR) fell 22.7% to 57,512 units. Those of utility vehicles Vistara Brezza, Ertiga, S-Cross dropped 38.1% to 15,178 units and vans by 37.9% to 9814 units. It is only in the midsize sedan segment that sales of Ciaz grew to 2397 units compared to 48 units sold in the year-ago period.
Sales of light commercial vehicle Super Carry stood flat at 1732 units during the month under review.
Automobile sales have fallen every month for almost a year now, except for October when the numbers were nearly flat. In June, nine out of India’s 11 main passenger vehicle makers reported a double-digit decline in sales. In the first quarter of fiscal 2019, the sales volume is estimated to have dropped 15-20%.
“The market is stressed and many dealers who have recently entered this space are finding it difficult to manage their repayment obligations. Every lender has been cautious and SBI is also doing the same thing in ensuring prudence,” said a top dealer requesting anonymity.
Banking industry experts estimate the total outstanding loans to automobile dealers to be in the range of Rs 70,000-80,000 crore.
Source: Economic Times0