The rising fuel costs and hike in interest rates has finally started reflecting in the passenger car sales in India. Although analysts take this to be a temporary phenomenon, however, the car makers are clearly worried as the input costs head north. Maruti Suzuki and Tata Motors have already reported a slack in their passenger car sales segment.
Domestic sales at Maruti reflected only 0.7 percent growth to 56,411 units while exports registered a 23.5 percent growth to 4,836 units. Sales of Maruti 800 took the biggest hit as the sales figures showed a slump of 14 percent of 5361 units. Omni and Versa sales together reflected 13.1 percent decline. SX4 and Dzire reflected 48 percent growth at 5807 units from 3923 units. However, A2 car segments continued the saga which grew merely by 0.3 percent.
Hyundai Motors India posted an overall growth of 45.3 percent with sales of 40,182 units in June out of which 21,881 units were sold in domestic market while 18,301 units were exported. Tata Motors, on the other hand, again reflected slump with sales of 17,017 units in June which was a 2 percent decline as compared to sale figures in May. Sales of Tata Indica fell by 27 percent to 8560 units while Indigo marked a growth of 102 percent with 4747 units.
The overall outlook continues continue to appear gloomy as the inflation in the country continues to rise and consumer spending takes a back seat due to rising interest rates on car loans and escalating food prices.
