Automobile sales - Worst July in two decades

Automobile sales - Worst July in two decades

53°
640 batman arkham knight l
Deal Subedar
958
2123
32

Domestic passenger vehicle sales at Maruti Suzuki India Ltd, the country’s largest car maker, fell nearly 37% from the year earlier in July. Second-ranked Hyundai Motor India Ltd recorded a 10% drop while total sales fell 16% at Mahindra and Mahindra Ltd. Sales at the local units of Toyota Motor Corp. and Honda Motor Co. fell 24% and 49%, respectively in July.

Sales of the five companies, which together make up about 85% of India’s passenger vehicle market, have fallen nearly 31% last month from a year earlier.

With the weak performance in July, passenger vehicle sales in India have now declined for the ninth month in a row.
https://cdn0.desidime.com/attachments/photos/578630/medium/60164052VW1t.png?1564725373

Source: Livemint

10 Comments  |  
11 Dimers
Missing
Deal Cadet
91
221
2

July is always bad because of the inauspicious month. Having said, 3 major factors for downslide are
1. EV push &
2. BS6 compliance putting buyers on a backfoot..
3. Real state of our economy – govt fudged all data & stats in the last two years just to gain popularity to show everything is going well.. with very less liquidity, such exuberance of buying new cars is usually curtailed.. even if millianials are not buying cars, someone else shd be buying them to take them around. Car is no longer a status symbol but more of a necessity nowadays, but our roads are saturated.

In general, more downslide is expected for car companies unless they evolve/innovate from their current approach.

Missing
Deal Newbie
59
85
2
santosh_blr wrote:

July is always bad because of the inauspicious month. Having said, 3 major factors for downslide are
1. EV push &
2. BS6 compliance putting buyers on a backfoot..
3. Real state of our economy – govt fudged all data & stats in the last two years just to gain popularity to show everything is going well.. with very less liquidity, such exuberance of buying new cars is usually curtailed.. even if millianials are not buying cars, someone else shd be buying them to take them around. Car is no longer a status symbol but more of a necessity nowadays, but our roads are saturated.

In general, more downslide is expected for car companies unless they evolve/innovate from their current approach.

EV push and BS6 have nothing to do with low sales. In fact, after BS6, prices of vehicles will shoot up so better to buy right now.
That said, low sales means one thing for Dimers: DISCOUNTS!

Geek
Shopping Friend
401
6416
143
I follow automobile sales closely. Few reasons I can think off
  • Economy : make no mistake here . Economy seems to be in bad shape especially job market. One of the major consumers of cars are IT guys. With automation and negative demand , IT employees have become reluctant to buy new cars.
  • cars have become very expensive: Only automobile companies are to be blamed for this. They kept increasing the prices of the cars. 5 to 6years back you could buy top trim of Honda City for 10 lacs . Now same car costs18 lacs. Even small tin cans like new Wagon r costs 7 lacs for top model. Car manufacturers have priced the cars out of middle classes reach.
  • Road taxes , insurance premiums have shot through the roof. New supreme Court rule for mandatory 3 years Insurance on new cars didn’t help the situation.
  • Thanks to poor infrastructure in the cities , more and more people are opting for shared mobility like Ola , Uber bike taxis etc. Finding parking is next to impossible in cities.
Cropped75770540910922727
Blogger
710
2163
55
cybertechie wrote:

I follow automobile sales closely. Few reasons I can think off 1) Economy : make no mistake here . Economy seems to be in bad shape especially job market. One of the major consumers of cars are IT guys. With automation and negative demand , IT employees have become reluctant to buy new cars. 2) cars have become very expensive: Only automobile companies are to be blamed for this. They kept increasing the prices of the cars. 5 to 6years back you could buy top trim of Honda City for 10 lacs . Now same car costs18 lacs. Even small tin cans like new Wagon r costs 7 lacs for top model. Car manufacturers have priced the cars out of middle classes reach. 3) Road taxes , insurance premiums have shot through the roof. New supreme Court rule for mandatory 3 years Insurance on new cars didn’t help the situation . 4) Thanks to poor infrastructure in the cities , more and more people are opting for shared mobility like Ola , Uber bike taxis etc. Finding parking is next to impossible in cities.

Auto co.s are digging their own graves.. SMH!

Download
Deal Cadet
120
847
33

Even June had downfall.
Major reason is BS6 and most of the cars are over priced.

Missing
Deal Cadet
57
266
1

Car sale drop is first sign of slowing economy.

Missing
Deal Cadet
50
256
2
cybertechie wrote:

I follow automobile sales closely. Few reasons I can think off

  • Economy : make no mistake here . Economy seems to be in bad shape especially job market. One of the major consumers of cars are IT guys. With automation and negative demand , IT employees have become reluctant to buy new cars.
  • cars have become very expensive: Only automobile companies are to be blamed for this. They kept increasing the prices of the cars. 5 to 6years back you could buy top trim of Honda City for 10 lacs . Now same car costs18 lacs. Even small tin cans like new Wagon r costs 7 lacs for top model. Car manufacturers have priced the cars out of middle classes reach.
  • Road taxes , insurance premiums have shot through the roof. New supreme Court rule for mandatory 3 years Insurance on new cars didn’t help the situation.
  • Thanks to poor infrastructure in the cities , more and more people are opting for shared mobility like Ola , Uber bike taxis etc. Finding parking is next to impossible in cities.

Very well articulated. Time for the share market crash….

Images
Deal Cadet
66
170
3
Expand
ramadesidime wrote:

Very well articulated. Time for the share market crash….

Auto sector already crashed in share market over last month, hope they do something to recover it.

Missing
Deal Lieutenant
119
6580
113

when is the mumbai real estate market crashing – builders and brokers still fooling people rage

Thumbimgcrop 1449951121329
Deal Cadet
32
909
12
Expand
vk6 wrote:

Auto sector already crashed in share market over last month, hope they do something to recover it.

Bro not last month
Auto sector shares are continuously falling from last 1 year.
Many are at 52 week low

Missing