Depressing Times for Auto Sector Continues as Sales Plunge 43%

The depressing performance of the auto sector continues as the sales of locally assembled cars plunged by 43% followed by a 42% decline in trucks, 19% in 4×4 and pickups, 52.6% in tractors, and 32.5% in two- and three-wheelers during the first 7 months of the current fiscal year.

January being the first month of the new calendar usually witnesses a sharp growth in sales as customers prefer to buy the latest models. However, contrary to past years, car sales and production in January plunged to 5,723 and 6,021 units from 13,758 and 13,780 in December 2022. Rising prices of vehicles, high markup rates, curbs on financing, plant shutdown amid a shortage of parts, and delays in delivery of vehicles contributed to the huge fall in car sales.

During the first 7 months of FY23, car production & sales registered a steep decline of 38.6% and 43% to 77,101 and 74,933 units from 125,507 and 131,759 units in the same period of the previous year. The total auto sales (including cars, light commercial vehicles, vans & jeeps) remained 31-month low to settle at 10,900 units in January 2023 showing a drop of 47% compared to January 2022 and 36% when compared to December 2022. This is also the lowest sales number after June 2020 (8,800 units) during the pandemic.

Total truck sales were 2,025 in July-Jan FY23 as compared to 3,492 units while tractor sales came down by 58% to 8,508 from 20,270 during the discussed period.

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