Car sales in India saw a dip again for the second consecutive month by 4.36% in August due to higher loan rates and diminishing demand for hatchbacks and mid-size cars.
According to the Society of Indian Automobile Manufacturers (SIAM), car sales in August this fiscal recorded 94,584 units compared to 98,893 in the same month last year. The dip is primarily affected car manufacturers like Maruti Suzuki, Tata Motors, Honda Siel Cars and Ford India registering negative growth in the passenger-car segment.
Mid-size car segment demand went down by 48% to 1,802 units in August from 3,437 and the hatchbacks also declined 2.3% to 68,470 in August from 70,087 the year before that was mainly dominated by Maruti, Hyundai and Tata Motors.
Tata Motors sales saw a negative growth of 10% to 12,216 compared to 13,588 last August. Maruti sales went down by 10.07% in August to 46,811 as against 52,055 in the same month last year. Hyundai Motor India (HMI) saw a positive growth of 34.08% to 21,607 as against 16,115 in the same month last year due to its hatchback i10.
According to Ashutosh Goel, analyst, Edelweiss Capital, “there are many new models waiting to be launched in few months and therefore people are also postponing their purchase decisions. The new car launches are just round the corner and the festive season will bring some excitement to an otherwise dull car market. It is expected to increase demand.”