Over the past 11 months, in May 2019, sales of passenger cars in India, including cars, SUVs and vans, fell by 10 percent, with the exception of October 2018, when there was a slight increase of 1.5 percent.
Maruti, which accounts for one of two cars sold in the country, saw sales fall 25 percent in May. For the country's largest automaker, negative sales volumes have been recorded for the third month in a row.
Sales of scooters and motorcycles, usually in demand among urban residents, fell 25 percent and 12 percent in April, respectively.
The decline in consumer demand was influenced by the general elections that lasted for more than a month and the slowdown in economic development, although companies offered attractive discounts and released new models. Dealerships are currently overflowing with unsold inventory.
Industry analysts say that with stricter BS-6 emissions regulations from April next year, the situation will remain challenging. In addition, a sharp rise in fuel prices will further reduce demand.
Rajesh Goel, director of sales and marketing at Honda Cars India, said the tough days for the auto industry won't go away anytime soon. “The market continues to be tough ... This is unprecedented in the last two decades. After the elections, we expected an upsurge, which has not yet come. ”
