BENGALURU, Aug 04 (Reuters): India's top three carmakers by sales, on Thursday, reported a drop in car sales to domestic dealers in July as pent-up demand from last year began to taper off.
Hyundai Motor India's sales to dealers dropped 3.3 per cent in July, the first decline in the fiscal year that started in April. Tata Motors' sales slid by 6 per cent, dropping for the second consecutive month.
Market leader Maruti Suzuki's sales fell an even steeper 9.6 per cent, notching the first drop since December 2023.
The three companies accounted for roughly two-thirds of retail car sales in June, with Maruti holding a 40 per cent market share, per industry data.
Analysts expect retail sales-dealers' sales to customers-to slow down this fiscal year after years of strong growth as urban customers upgraded to newer and bigger vehicles such as sports utility vehicles (SUVs).
"For about two years, the industry has grown substantially. One year of consolidation is expected, so this year would be flattish," said Amit Hiranandani, automobile sector lead analyst at brokerage SMIFS.
"Hardly any growth can be expected in the passenger vehicle industry this year."
Maruti leads drop in Indian carmakers' sales to dealers
FE Team | Published: August 04, 2024 23:19:33
Maruti leads drop in Indian carmakers' sales to dealers
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