Earlier, the car industry was expecting a fall in the month of November. The expectations turned out to be a reality as the industry witnessed a decline in car sales in November.
After facing a tough time in the month of October, the reporting month is also unable to bring fortune in the car industry. Car manufacturers felt the highest impact of a slowing economy with car sales recording the steepest fall this November.
Maruti Suzuki, the largest car manufacturer in India, recorded a sales crash of about 27%. This steep fall is the company’s worst performance in the past 24 months. Sales in the A2 segment including the WagonR, Zen, and Swift recorded a decline of more than 26% and the A1 segment comprising Maruti 800 reported a sharp decline of about 60%. However, the A3 segment comprising the SX4 and Dzire showed some positive growth.
Maruti’s official said, “We, however, remain optimistic about December in which our forays into rural markets, the impact of the Sixth Pay Commission and institutional sales are expected to kick in”.
Furthermore, the leading manufacturer of utility vehicles, Mahindra & Mahindra recorded a fall of about 40 per cent in November. The leading sedan of the Indian car market, Mahindra-Renault Logan, recorded the sharpest decline of almost 81% in this month.
Tata Motors, India's third largest car manufacturer, showed 12% decline in the car sales with a total number of 14,327 units sold in November 2008 against 16,322 units in the corresponding month last year. Even the Indica recorded 14% fall, though Indigo grew by about 74%.
Recently, Honda had announced a heavy discount on its Civic Hybrid which helped the company and it experienced a growth of 15%. Still, November proved to be a tough and challenging time for the company.
It is also believed that hit by cyclonic rain in South India followed by a devastated Mumbai terror attack have contributed to the falling sales.