The month of May was one of the most worrisome months in the recent years. The hike in car price by several car manufacturers, imminent hike in fuel prices, higher interest rates, rising input costs and other issues kept troubling the car sector.
Industry experts say that the fuel price hike and increase in car prices were the main factors that pulled down car sales in May. The net result was that car sales performance was a modest 13-14 percent.
The market leader Maruti Suzuki India’s sales increased by 14.6% posted sales of 64,143 units as against the 55,952 units sold in the corresponding month in 2007. The newly launched A3 segment comprising of Swift Dzire and SX4 recorded a performance high of 18.7% with 5,946 units as compared to 5,009 units last year. Maruti’s exports went up by 40 percent after 4,858 units were shipped off 3,448 vehicles in May 2007.
Maruti’s sale was closely followed by Hyundai Motors. The company’s i10 car accounted for 30 percent of sales after recording sales of 10,627 units. Hyundai’s total sales increased by 47 percent as against the sales recorded in May last year. US car major General Motors sales performance has not seen any growth this year. The company posted sales of 5,789 units as compared to 5,432 units in May last year.
The premium sedan manufacturer Honda Siel Cars India also witnessed a downward fall of 18 percent. The company posted sales of 3,944 units in May as against the 4,811 units sold last year. The company sold only 543 Accord in the first month of its launch in India. Also, the newly launched 8th generation Accord is yet to bring in impressive returns. Mahindra-Renault’s Logan posted depressing sales of 1,531 units as against 2,551 units posted in May 2007. The slowdown is likely to continue for the next few months.