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Honda Cars sales dip 28 per cent in May; These two factors subdue sales of automobile companies

The company is still hopeful that sales will revive due to favourable indicators on monsoon and expected actions by the new government. In April, HCIL reported 23 per cent increase in domestic sales at 11,272 units as against 9,143 units in the same month last year.

India TV News Desk India TV News Desk
New Delhi Updated on: June 02, 2019 11:08 IST
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Image Source : HONDACARINDIA.COM

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Honda Cars India Ltd (HCIL) on Saturday reported 27.87 per cent decline in domestic sales to 11,442 units in May as against 15,864 units in the same month last year. HCIL said it also exported a total of 450 units during last month.

"The market continues to be tough for the auto industry with two consecutive months of such a high de-growth. It is unprecedented in the last two decades. After elections, we were expecting an upswing which has not yet come. Factors like liquidity that is affecting capital to auto sector along with increase in fuel prices have remained a challenge to revive consumer sentiments," HCIL Senior Vice President and Director, Sales and Marketing Rajesh Goel said.

The company is still hopeful that sales will revive due to favourable indicators on monsoon and expected actions by the new government, Goel noted.

In April, HCIL reported 23 per cent increase in domestic sales at 11,272 units as against 9,143 units in the same month last year.

The company's April sales growth is primarily due to lower base effect, as there was no 'Amaze' in corresponding month last year during model runout, Rajesh Goel said.

High interest and fuel cost along with liquidity constraints continued to subdue sales of Indian automobile companies.

Meanwhile, in May, Maruti Suzuki India reported a 22 per cent decline in sales at 1,34,641 units. The company had sold 1,72,512 units in May 2018, Maruti Suzuki India (MSI) said in a statement.

Maruti Suzuki India's overall sales including exports for April declined by 17.2 per cent to 143,245 units from 172,986 units' off-take recorded during the corresponding period last year.

(With inputs from agenices)

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