The Indian automobile market has seen steep downward curves in sales performance in the previous FY. The beginning of the new FY has not been any different for the passenger vehicle segment with car sales in India dropping by about 7 percent to 8 percent during April 2013. Major automakers like Tata, Toyota and Hyundai have witnessed drop in sales when compared to the numbers April 2012. Maruti, Honda and Mahindra have seen increase in sales by a small margin while Renault has made it big on the charts with the success of its Duster.
The increase in excise duty on SUV cars in India has also influenced the market considerably. The SUV and MUV segment, which were primary growth drivers in the previous fiscal when all other categories were having a tough time, have seen small percentage of increase in sales during the month. While some of the automakers have revealed their unhappiness for increase in excise duty on Utility Vehicles, others are hoping that the market will get better with fall in petrol prices.
Automobile manufacturers are following different methods to battle the situation. Toyota Kirloskar has worked out ways to reduce its inventory while Hyundai has planned methods to balance output for exports and domestic markets.
The results in motorcycle market have been slightly on the positive side with sales increasing by 1 percent to 2 percent during the period. While Indian manufactures TVS and Hero MotoCorp witnessed fall in sales during the month the Japanese majors Yamaha and Honda registered sales hike by 33 percent and 29 percent respectively.