Despite the onset of the festive season across India, buyer sentiments remained low, as the passenger car sales figures turned out to lower than last year. Domestic sales were down to 1,58,247 units as compared to 1,72,493 units in November last year, which effectively means a decline of 8.25 per cent. But a reason to be optimistic is that sales of motorcycles went up marginally, and so did the overall two wheeler sales.
Motorcycle sales went up to 8,67,518 from 8,67,088 units this November, which was an increase of 0.06 per cent as compared to November 2011. Overall, two wheeler sales were 1.23 per cent higher in the same period as against last year (11,75,429 against 11,61,176), as disclosed by the Society of Indian Automobile Manufacturers (SIAM).
Commenting on the current state of the automotive market, SIAM Director General Vishnu Mathur said, “The carryover from the festive season was not there. Market continues to be tough due to the same reasons such as the high interest rates and fuel prices, and low consumer sentiments.” Statistically, August 2012 showed the worst drop in sales ever, when a decline of 18.56 per cent was witnessed, and this drop was only second to it.
The Director also said that sales problems were compounded by lack of a stable Central Government, frequent job losses and slow economic growth. These are some of the factors that have hit the entry level hatchback segment quite hard. Previously, it had always been this segment which had been driving sales northwards.
