Home / Business / Its ‘May Day’ for car, 2-wheeler makers as sales crash on weak demand

Its ‘May Day’ for car, 2-wheeler makers as sales crash on weak demand

NEW DELHI: The new fiscal year did not ease pressure on the severely-strained auto industry as top players such as Maruti Suzuki and Hyundai in passenger vehicles and Honda and Royal Enfield in two-wheelers reported double-digit decline in numbers.

Sales have been falling over the past few months as nervous buyers have stayed away from new purchases on uncertainty related to elections and growing distress in rural areas.

Maruti’s sales fell by 20% in April as the company sold around 1.3 lakh units in the month against 1.6 lakh in the same month last year. Chairman RC Bhargava has said that growth will be difficult to come by anytime soon as buyer confidence remains weak.

Hyundai, which is slated to launch a new mini SUV in the venue, saw numbers go down by 10%. Sales head Vikas Jain has said that a turnaround may take some more time as uncertainty related to the polls is at its peak now.

The steepest fall of 32% was seen by Honda Motorcycle and Scooters India (HMSI), the country’s second-largest two-wheeler maker, which sold 4.3 lakh units against 6.3 lakh in April last year.

Pressure in urban cities and growing problems in the rural markets are among factors that are leading to a depression in two-wheeler numbers. The pain for Royal Enfield also continues as its numbers fell 21% to 59,137 units against 74,627 units in April last year.

Companies have been cutting production and deepening discounts to attract buyers.

News credit : Indiatimes