Domestic auto sales crash to all-time low at 18 pc in December

New Delhi, Jan 12 (PTI) The struggling Indian automobile
industry Monday reported yet another worst ever performance
with overall domestic sales declining by 18.2 percent in
December 2008, as commercial vehicles and two-wheelers sales
crashed heavily.

The total vehicle sales in the domestic market stood at
5,97,622 units in December last year as against 7,30,603 units
in the same month in 2007, according to the Society of Indian
Automobile Manufacturers (SIAM).

The previous worst overall sales was in November 2008
with a decline of 17.98 percent at 7,11,281 units as against
8,67,243 units in the same month previous year.

The decline in sales was led by the beleaguered
commercial vehicles (CV) segment, which recorded a dip of
58.28 percent at 17,920 units in December 2008 as against
42,961 units in the corresponding month the previous year.

Passenger cars segment performed relatively better than
expected despite a decline of 6.9 percent in December 2008 to
82,105 units, from 88,272 units a year ago. SIAM had expected
a 15 percent decline.

Motorcycle sales in the country, during the month, was
down by 22.9 percent at 3,35,820 units, against 4,35,925
units in the year-ago period, while total two-wheeler sales
were down by 15.4 percent at 4,61,302 units, compared with
5,45,485 units in the same month previous year.

SIAM, which has updated its records, said this is the
worst sales performance by the CV segment in 11 years.

"The previous worst ever sales in the CV segment was in
July 1997, which witnessed a decline of 51.76 percent," SIAM
Senior Director Sugato Sen said.

He said the two-wheeler segment has recorded a worst
performance with a 15.4 percent decline in sales as against a
14.68 percent decline in November last year.

Sen said the Indian government's stimulus package for the
auto sectors, specially the CV segment has not yet yielded
results and "2009 is going to be even tougher".

In the passenger cars segment, market leader Maruti
Suzuki India reported a decline of 7.5 percent at 46,262
units in December 2008, as against 50,056 units in the same
month a year ago.

Rival Hyundai Motor India, however, reported a jump of
19.3 percent at 15,600 units as against 13,069 units in the
corresponding month previous year. Tata Motors car sales
declined by 15.2 percent at 8,422 units compared with 10,876
units in the year-ago month.

In the motorcycle segment, market leader Hero Honda
Motors saw a dip of 12.7 percent at 1,97,364 units as
against 2,26,103 units in December 2007. Bajaj Auto's bike
sales crashed by 55.3 percent at 61,546 units as against
1,37,980 units in the same month previous year.

Chennai-based TVS Motor also reported a decline of 38
percent at 23,832 units in December as against 38,767 units in
the year-ago period.

Scooter segment was the exception recording a growth of
16.4 percent at 90,247 units as against 77,494 units in
December 2007.

Honda Motorcycle and Scooter India sales were up by 19.1
percent at 56,186 units as compared to 47,168 units in the
year-ago month. Hero Honda's sales stood at 12,363 units, up
49 percent.

The three-wheeler sales were down by 28.9 percent at
19,048 units as against 26,823 units in December 2007.

In the commercial vehicles segment, heavy and medium
commercial vehicles sales crashed by 71.1 percent at 6,914
units as compared with 23,996 units in the year-ago month.
Light CV sales also dropped 41.9 percent at 11,006 units as
against 18,965 units in the same month previous year. PTI