The auto sector continues its negative trajectory for the ninth month now and automakers have shown no signs of growth as volumes have nosedive across different segments. India's largest automaker Maruti Suzuki continues to be one of the worst affected by the slowdown as sales for the month of August 2019 continued to show a decline. The company registered a 34.4 per cent drop in domestic sales in August this year with 97,061 units sold as opposed to 147,700 units sold in August 2018. The automaker has registered a massive drop in volumes largely with its bread and butter segment - hatchbacks. The company's total sales stood at 106,413 units (domestic + exports), witnessing a drop of 32.7 per cent over 158,189 units sold in August last year.
Maruti Suzuki sold 10,123 units in August 2019, in the A-Mini segment that comprises the Alto and the older generation Wagon R, witnessing a decline of 71 per cent over 35,895 units sold during the same period in 2018. In the A-Compact segment that comprises models like the new Wagon R, Ignis, Swift, Celerio, Dzire, Baleno and the likes, the manufacturer registered a sale of 54,274 units, dropping by 23.9 per cent over 71,364 units sold in August 2018.
The UV segment fared better for Maruti with sales growing by 3.1%
The B-utility vehicles segment including the Vitara Brezza, S-Cross, Ertiga and the new XL6, did bring some respite for Maruti Suzuki with 18,522 units sold in August 2019, a growth of 3.1 per cent over 17,971 units sold in August 2018. The vans segment comprising the Omni and the Eeco saw sales drop by 36.6 per cent with 8658 units sold, as opposed to 13,663 units sold during the same month last year.
Maruti Suzuki's exports during the previous month saw a 10.8 per cent decline with 9352 units shipped, as against 10,489 units in August last year. Meanwhile, 2,333 units of the Baleno were shipped to Toyota that are rebadged as the Glanza.
With the advent of the festive season and the government's assurance to OEMs for continued growth of ICE vehicles, the auto sector is expected to witness a rejuvenation after continues slump in volumes. Furthermore, the Finance Minister recently announced additional depreciation of 15 per cent benefit to vehicle buyers, while plans to hike vehicle registration fees has been pushed to June 2020 given the slowdown. The auto industry has been requesting a temporary GST reduction for the auto sector, to kick-start sales once again, but there have been no such announcements by the ministry.
