The slump in auto sales continued in November, with auto manufacturers releasing their sales numbers for the same on Monday.
Honda Cars India Ltd and Tata Motors saw the biggest dip with a 50.33 per cent and 25.32 per cent decline in total sales respectively compared to the same period in 2018. Toyota Kirloskar Motors (TKM) recorded an 18.86 per cent decline of domestic and export sales, while Mahindra & Mahindra (M&M) saw sales drop by 9 per cent. Hyundai Motors India Ltd (HMIL) saw sales go up 7.2 per cent.
India’s largest carmaker Maruti Suzuki India (MSI) reported a sales dip of 1.9 per cent, shipping 1,50,630 units in November compared to 1,53,539 units the previous year. Sales in the mini (Alto, WagonR), mid-sized sedan (Ciaz) and utility category (Vitara Breza, S-Cross and Ertiga) declined, while those of the compact segment (Swift, Celerio, Ignis, Baleno and DZire) rose.
Commercial vehicles manufacturer and Hinduja’s flagship firm Ashok Leyland reported a 22 per cent decline. Similarly, M&M’s commercial wing saw a ten per cent sales slump.
New players in the market, however, recorded decent numbers. MG Motors retailed 3,239 Hector units in November, a slight dip from its tally of 3,536 units in October—attributable to the festive sale season.
Kia Motors saw positive growth, selling 14,005 units of the Seltos SUV in November. According to the company, this makes the Seltos the bestselling SUV in India for the second consecutive month.
Motorcycle sales showed mixed results, with Bajaj Auto recording a sales dip of 12 per cent in domestic sales, but a 14 per cent rise in exports, leading to a total dip of just 0.9 per cent. Suzuki Motorcycles recorded an increase in sales by 23.39 per cent and both Hero MotorCorp and TVS motors facing a decline of 15.31 and 16.64 per cent respectively.
Shares of automobile companies tumbled as much as 2.59 per cent on Monday after the subdued sales numbers were released.
Maruti Suzuki India saw its shares fall 1.77 per cent to Rs 7,121.20 on the BSE and 1.61 per cent to Rs 7,129 on the NSE.
Tata Motors ended 0.28 per cent lower at Rs 161 on the BSE, while it fell 0.43 per cent to Rs 160.80 on the NSE.
Shares of Mahindra & Mahindra (M&M) dropped 1.15 per cent to Rs 523.95 in early trade on the BSE. However, it recovered to close 0.79 per cent higher at Rs 534.25. On the NSE, the stock settled 0.68 per cent up at Rs 530.50.
Hero MotoCorp fell 1.08 per cent to Rs 2,405.80 on the BSE and 1.21 per cent to Rs 2,404 on the NSE.
TVS Motor Company lost 2.31 per cent to Rs 466 on the BSE and 2.59 per cent to Rs 464.90 on the NSE.
Bajaj Auto shares also registered 0.82 per cent decline to Rs 3,149.90 on the BSE and 0.43 per cent to Rs 3,162.45 on the NSE.
Analysts said the fall in shares of auto companies can be attributed to macro challenges faced by the industry. However, the sector might gain in December.
"After a blockbuster festive season, decline in auto sales numbers in November again failed to reinstate the confidence of investors. Macro challenges continue to plague the industry and is expected to remain subdued in the next couple of quarters," Paras Bothra, President of Equity Research, Ashika Stock Broking said.
"However, things might change in December as consumer demand for PVs (passenger vehicles) typically picks up in the year end," he added.
With inputs from PTI