Indian auto industry is going through a prolonged phase of slow demand, as a result of which fortunes of prominent companies have taken a hit. Recently, Indian auto major, Tata Motors, released sales figures for November, 2013. According to these figures, Tata Motors registered a 39 per cent decline in total sales, which stood at 40863 units, its lowest total in last three years. Tata Motors is one of the largest auto makers in the country and such performance by the firm is broadly indicative of the kind of adversities that exist in the market.
During November 2012, sales figure inclusive of exports was 66500 units while the same in 2011 November was 76823 units. Furthermore, domestic sales of Tata Motors were even worse as this year in November, the demand further fell by over 40 per cent to 37192 units. Statistics suggest that the same figure was 62354 units in the corresponding period last year. Notably, even exports failed to register growth in November as sales declined to 3671 units as compared to 4146 units sold a year earlier.
Tata Motors, in a statement, said “The sales of commercial vehicles in November, 2013 in the domestic market were 26816 units, Light Commercial Vehicle (LCV) sales were 19993 units while Medium & Heavy Commercial Vehicle sales stood at 6823 units." As far as the passenger vehicles are concerned, Tata Motors sold 10376 units during November 2013. The main drive for demand in passenger car segment were Nano, Indica and Indigo, which accounted for 7910 units while the same for Sumo, Safari, Aria and Venture was 2466 units.
On the other hand, Tata Motors arch-rival, Mahindra & Mahindra, too recorded a considerable decline in sales. As per sources, sales of passenger cars plummeted by 32 per cent to 16771 units in November 2013 against 24604 units in the same month in 2012. The sales of Mahindra & Mahindra have been majorly hit by demand generated by Ford EcoSport and Renault Duster in the compact Sports Utility Vehicle (SUV) segment. Apart from this, various other factors including hike in excise duty on utility vehicles have marred the growth prospects of Mahindra & Mahindra.
Pravin Shah, Chief Executive, Automotive Division for Mahindra & Mahindra was heard as saying “After the festive season, the auto industry has turned to further decline and continues to remain subdued. Unless some concrete measures are provided for its revival, we do not foresee any immediate turnaround."
