Auto sales hit slow lane in Aug

NEW DELHI: Leading automakers Maruti Suzuki, Hyundai, Mahindra, and Tata Motors saw a dip in dispatches to dealers in August amid dip in demand with many prospective buyers postponing their buys anticipating a reduction in vehicle prices on account of the new GST framework. The country’s largest carmaker Maruti Suzuki India reported an 8 per cent year-on-year dip in dispatches of passenger vehicles in the domestic market last month. The company’s dispatches stood at 1,31,278 units last month as compared with 1,43,075 units in the year-ago month. The sale of mini segment cars, comprising Alto and S-Presso, declined to 6,853 units against 10,648 units in August 2024.

Dispatches of compact cars, including Baleno, Dzire, Ignis and Swift, however, increased to 59,597 units from 58,051 units a year ago. Utility vehicles, consisting of Grand Vitara, Brezza, Ertiga, and XL6, clocked sales of 54,043 units last month compared to 62,684 units in the year-ago period, registering a decline of 14 per cent.

Hyundai Motor India said its domestic dispatches to dealers declined 11 per cent year-on-year to 44,001 units last month as against 49,525 units in the year-ago period. “Our goal is to establish India as a strategic manufacturing base for emerging economies and to become Hyundai’s largest export hub outside South Korea,” the company’s COO Tarun Garg said.

He did not elaborate on the reasons for the sales dip in the domestic market. 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. “With the final GST announcement approaching, we consciously decided to bring down the wholesale billing to minimise the stock being carried by our dealers,” M&M CEO (Automotive Division) Nalinikanth Gollagunta said. The company looks forward to GST rationalisation, which would be a demand driver through the festive season, he added.