Date : Dec-12-2008 13:34 Automakers are in fears of a complete slowdown as auto sales decelerated further in November. According to the Society of Indian Automobile Manufacturers (SIAM) monthly data released on December 10, sale of popular cars fell 19.38 per cent to 83,059 vehicles from 1.03 lakh vehicles during the same month last year.
Sales of all vehicles reported a bigger fall in November than in the previous month due to the high interest rate and credit crises, seen as the worst month for the auto industry in eight years. The industry sold 7.11 lakh vehicles in November against 8.67 lakh vehicles in the same month last year, a drop of 18 per cent.
As per SIAM data, 8 of the 13 carmakers have posted negative sales previous month. Maruti Suzuki, the largest car maker, has posted a 36 per cent drop in car sales to 43,258 vehicles as Hyundai Motors has reported a 23 per cent fall to 14,601 vehicles Automakers are forced to cut production due to slowdown to adjust with the market situations.
The overall drop in sales reported from all types of vehicles but mainly led by commercial vehicle that declined 49.52 per cent to 20,637 vehicles in November from 40,879 vehicles last year. Two-wheeler sales also slipped 14.68 per cent to 5.67 lakh vehicles from 6.65 lakh vehicles in the same month last year. Motorcycle sales that form 85 per cent of the total two-wheeler segment declined 20.24 per cent to 4.31 lakh vehicles against 5.40 lakh vehicles last year.
Industry is now banking on the economic package announced by the government to revitalize its fates. Excise on all vehicles was cut by 4 per cent following which car companies reduced prices hoping for some rise in demand.
Sales of all vehicles reported a bigger fall in November than in the previous month due to the high interest rate and credit crises, seen as the worst month for the auto industry in eight years. The industry sold 7.11 lakh vehicles in November against 8.67 lakh vehicles in the same month last year, a drop of 18 per cent.
As per SIAM data, 8 of the 13 carmakers have posted negative sales previous month. Maruti Suzuki, the largest car maker, has posted a 36 per cent drop in car sales to 43,258 vehicles as Hyundai Motors has reported a 23 per cent fall to 14,601 vehicles Automakers are forced to cut production due to slowdown to adjust with the market situations.
The overall drop in sales reported from all types of vehicles but mainly led by commercial vehicle that declined 49.52 per cent to 20,637 vehicles in November from 40,879 vehicles last year. Two-wheeler sales also slipped 14.68 per cent to 5.67 lakh vehicles from 6.65 lakh vehicles in the same month last year. Motorcycle sales that form 85 per cent of the total two-wheeler segment declined 20.24 per cent to 4.31 lakh vehicles against 5.40 lakh vehicles last year.
Industry is now banking on the economic package announced by the government to revitalize its fates. Excise on all vehicles was cut by 4 per cent following which car companies reduced prices hoping for some rise in demand.
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