Dark clouds still prevail on cars sales for the fourth month

Friday 14 February 2014, 09:52 AM by

Car makers have been facing a tough time in the country for quite a while now. As per recent sales report, car sales have fell for the fourth consecutive time last month. The decline noted in January 2014 was 7.59%.

Sugato Sen, SIAM Deputy Director General, said, “The downward trend continues. There is no respite for the auto industry. We are having a huge hope from the government that in the vote-on-account Budget, there will be some support for the auto industry. We are hoping that there will be reduction in excise duty. For the CV segment, we have been asking for a fleet modernization scheme and also implementation of load management.” Excise duty of around 12% to 30% has been badly affecting the automobile market in India and efforts to bring it down to 8% are underway.

As per an official data released by Society of Indian Automobile Manufacturers (SIAM), car sales within the country stood at 1,60,289 units in January this year as compared to 1,73,449 vehicles recorded in same month of 2013. Sugato Sen said, “For the total CV segment, this is the ninth month of decline, while for M&HCV it is the 23rd month of consecutive decline.” Situation in recent months has been considered to be worse than year 2008 – 2009 scenario when government has declared some policy support to provide relief to the automobile industry.

India's largest car-maker Maruti Suzuki reported 6.88% decline in its domestic sales reported at 82,461 units as against 88,557 noted in the same month last year. Japanese carmaker Honda has reported a threefold increase in sales last month at 15,597 units as against 5,421units noted in January 2013. Hyundai reported 2.61% dip in sales last month at 33,351 units as against 34,247 vehicles in January last year. Tata Motors has reported a decline in sales by 24.38% to 8,463 units in January from 11,192 in the same month last year.

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