Indian car sales post biggest fall in eight years
Friday, 12 December 2008
NEW DELHI, Dec 11 (AFP): Indian car sales posted their biggest annual fall in eight years yesterday, highlighting the downturn in Asia's third-biggest economy as automakers raced to cut prices to lure buyers.
Domestic passenger-car sales tumbled 19.38 per cent in November-to 83,059 units-compared to the same month in 2007.
It was the biggest year-on-year fall since November 2000, when car sales plunged by nearly 22 per cent, said Dilip Chenoy, director-general of the Society of Indian Automobile Manufacturers (SIAM), which released the data.
Trucks and other commercial vehicles sales, hit by a slowdown in construction and other economic activity, also slumped, by 49.52 per cent to 20,637 units.
That was the biggest fall in nearly 11 years, according to SIAM's records.
Total vehicle sales in India slumped by 17.98 per cent in November.
Chenoy said he could not recall a month when overall sales were so bad, calling it the "worst-ever total performance. All segments have not fallen together so drastically before."
"This is a strong indicator the economy is slowing, it's a big warning signal," said auto analyst Vaishali Jajoo at Mumbai's Angel Broking.
But worse could be yet to come.
Until January, India's vehicle market was posting double-digit expansion as an economy growing by nine per cent-plus created new, affluent buyers.
The tax cut was part of a stimulus package to help the vehicle and other sectors.
Ford India announced price cuts Wednesday of up to 1,100 dollars for top-end models. Japanese-owned Maruti Suzuki, Japan's Honda Motors and South Korea's Hyundai Motors, among others, have also lowered prices.
Motorcycle sales fell 20.24 per cent to 431,171 units while total two-wheeler sales fell 14.68 per cent to 567,502 units.
Manufacturers have been temporarily shutting plants to cut output.
Global automakers have been steering towards India to grab a share of one of the world's least penetrated car markets, at just seven vehicles per 1,000 people compared to 550 per 1,000 in Germany.
But Japan's Nissan and France's Renault now have scaled back plans for joint projects in India and others vehicle makers are expected to also curb output.
Domestic passenger-car sales tumbled 19.38 per cent in November-to 83,059 units-compared to the same month in 2007.
It was the biggest year-on-year fall since November 2000, when car sales plunged by nearly 22 per cent, said Dilip Chenoy, director-general of the Society of Indian Automobile Manufacturers (SIAM), which released the data.
Trucks and other commercial vehicles sales, hit by a slowdown in construction and other economic activity, also slumped, by 49.52 per cent to 20,637 units.
That was the biggest fall in nearly 11 years, according to SIAM's records.
Total vehicle sales in India slumped by 17.98 per cent in November.
Chenoy said he could not recall a month when overall sales were so bad, calling it the "worst-ever total performance. All segments have not fallen together so drastically before."
"This is a strong indicator the economy is slowing, it's a big warning signal," said auto analyst Vaishali Jajoo at Mumbai's Angel Broking.
But worse could be yet to come.
Until January, India's vehicle market was posting double-digit expansion as an economy growing by nine per cent-plus created new, affluent buyers.
The tax cut was part of a stimulus package to help the vehicle and other sectors.
Ford India announced price cuts Wednesday of up to 1,100 dollars for top-end models. Japanese-owned Maruti Suzuki, Japan's Honda Motors and South Korea's Hyundai Motors, among others, have also lowered prices.
Motorcycle sales fell 20.24 per cent to 431,171 units while total two-wheeler sales fell 14.68 per cent to 567,502 units.
Manufacturers have been temporarily shutting plants to cut output.
Global automakers have been steering towards India to grab a share of one of the world's least penetrated car markets, at just seven vehicles per 1,000 people compared to 550 per 1,000 in Germany.
But Japan's Nissan and France's Renault now have scaled back plans for joint projects in India and others vehicle makers are expected to also curb output.