India’s top car makers reported lower dispatches to dealers for the fourth consecutive month in August amid weak demand, with prospective buyers adopting a wait-and-watch approach in anticipation of a reduction in vehicle prices following the announcement of a proposed GST rate rationalisation.
Maruti Suzuki, Mahindra & Mahindra, Hyundai Motor India and Tata Motors — four largest carmakers with around 80 per cent market share — had a combined sales drop of 8.7 per cent in August.
Analysts at Nomura said automotive dealers stocked up conservatively for August ahead of the key tax cut decision, as buyers delay festive season purchases, expecting lower prices.
Maruti Suzuki India, reported an 8 per cent year-on-year (YoY) dip in dispatches of passenger vehicles in the domestic market last month. The company’s dispatches stood at 1,31,278 units last month compared with 1,43,075 units in the year-ago month.
Hyundai Motor India said its domestic dispatches to dealers declined 11 per cent YoY to 44,001 units last month, as against 49,525 units in the year-ago period.
Mahindra & Mahindra said its utility vehicle sales stood at 39,399 units in the domestic market last month, a dip of 9 per cent over 43,277 units in the year-ago period.
Tata Motors also reported a 7 per cent dip in passenger vehicle dispatches last month, selling 41,001 units in August compared with 44,142 units in the year-ago period.