The India automobile industry saw a record boom last year. With rising inflation though, sales are on a downward spiral this year.
The top three carmakers - Maruti Suzuki, Hyundai Motors and Tata Motors - all reported a drop in sales in the month of July compared to last year.
Market leader Maruti Suzuki showed a 26.2 per cent decline. Domestic sales of Hyundai Motors dipped 11 per cent dip while Tata Motors saw the biggest fall of 38.3 per cent in July.
P.M. Telang, Managing Director of Tata Motors, said: "Fuel prices have gone up sharply, more for petrol. Also the interest rates, which are going up in the market place are affecting the car market.
"However we believe, it is a short-term phenomenon and hopefully things will come back. So we are not going slow on our capex. We are going ahead with our expansion plans, product launches as per our original plans."
But not all auto companies had a bad month. Those who either launched new models or revamped their existing ones did well.
Toyota was the leader with a near 100 per cent growth on the back of its new models, the Etios sedan and the Liva hatchback. Honda's sales grew over a per cent after it lowered the price of its popular City model.
General Motors also rode on the success of its new diesel-powered Chevrolet Beat to register a 34 per cent rise in sales in July.
Karl Slym, President of General Motors India, said: "We will continue to upgrade our current cars you have in the market. You know the portfolio very well. And we will also bring in five new cars over the next 18 months to be able to either refresh or build our portfolio."
The festive season begins in September, when Indians traditionally go on a buying spree and carmakers have begun lining up offers to bring back customers.
Car sales are seen as a key indicator of India's economic health. Initial reports suggest that there has been a nine per cent drop in sales of passenger vehicles in July as compared to last year. Carmakers are now banking on the festive season and new launches to revive their fortunes.
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The top three carmakers - Maruti Suzuki, Hyundai Motors and Tata Motors - all reported a drop in sales in the month of July compared to last year.
Market leader Maruti Suzuki showed a 26.2 per cent decline. Domestic sales of Hyundai Motors dipped 11 per cent dip while Tata Motors saw the biggest fall of 38.3 per cent in July.
P.M. Telang, Managing Director of Tata Motors, said: "Fuel prices have gone up sharply, more for petrol. Also the interest rates, which are going up in the market place are affecting the car market.
"However we believe, it is a short-term phenomenon and hopefully things will come back. So we are not going slow on our capex. We are going ahead with our expansion plans, product launches as per our original plans."
But not all auto companies had a bad month. Those who either launched new models or revamped their existing ones did well.
Toyota was the leader with a near 100 per cent growth on the back of its new models, the Etios sedan and the Liva hatchback. Honda's sales grew over a per cent after it lowered the price of its popular City model.
General Motors also rode on the success of its new diesel-powered Chevrolet Beat to register a 34 per cent rise in sales in July.
Karl Slym, President of General Motors India, said: "We will continue to upgrade our current cars you have in the market. You know the portfolio very well. And we will also bring in five new cars over the next 18 months to be able to either refresh or build our portfolio."
The festive season begins in September, when Indians traditionally go on a buying spree and carmakers have begun lining up offers to bring back customers.
Car sales are seen as a key indicator of India's economic health. Initial reports suggest that there has been a nine per cent drop in sales of passenger vehicles in July as compared to last year. Carmakers are now banking on the festive season and new launches to revive their fortunes.
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