Top players of the Indian auto market are hit hard by dwindling sales during the month of June 2013. The country's largest passenger car maker, Maruti Suzuki India Limited, and the leading utility vehicle maker, Mahindra & Mahindra were impacted hardly as the demand for cars reduced for the eighth month in a row during the month, despite record freebies, goodies and finance schemes on offer.
The domestic sales of Maruti Suzuki dipped by 7.8 per cent to 77,002 units in June 2013 under the review of year ago period. Along with, the sluggish market conditions took a heavy toll on Mahindra & Mahindra, which registered a drop of 13 per cent during the month. Expressing his views on this, the Chief Executive of Automotive Division at Mahindra & Mahindra, Pravin Shah was quoted as saying, “We have felt this decline in June like the entire auto industry that has been falling for the past few months. The depreciating rupee resulting in spiralling fuel costs coupled with high interest rates and the additional excise duty on SUVs have dampened the industry and impacted our performance.”
However, Mahindra somehow managed to emerge as a volume puller, backed by the immense popularity for its Sports Utility Vehicles (SUVs), which also helped it in overtaking Tata Motors to come up as the third largest car maker in the country. It must be noted that Tata Motors reported its continuous sales fall with a negative growth of 32 per cent in June 2013.
Toyota Kirloskar Motor also reported a fall of 19 per cent during the month. Expressing his views on dwindling market conditions, the Deputy Managing Director and Chief Operating Officer (Marketing and Commercial) at Toyota Kirloskar Motor, Sandeep Singh said, “We hope the market to improve after the monsoon and the festive season to change the prevailing sentiments.”
The country's second largest passenger car maker, Hyundai Motor India, however, managed to report a marginal growth of 1 per cent in its domestic sales. The Vice President (Sales & marketing) of the company, Rakesh Srivastava said that the customer attention of its dealers and strong product portfolio has helped the auto maker in increasing its market share and volumes. On the other hand, the Vice President (Corporate Affairs) for General Motors India, P Balendran said that the fall in sales of the American car maker has taken place because of “The general subdued market conditions due to rising fuel prices and high interest rates along with macroeconomic uncertainties.”
It must be noted that Honda Cars India also reported a recovery in June 2013. “The tremendous response to Amaze has surpassed our expectations. We have already sold more than 18,000 Amaze in the domestic market,” said Jnaneswar Sen, the Senior Vice President (Marketing and Sales) at Honda Cars India.