NEW DELHI: It seems that the recent announcement of corporate tax rate cut and big discount offers have not worked in the favour of Maruti Suzuki.
The country’s largest carmaker on Tuesday reported a 26.7 per cent decline in domestic passenger vehicle (PV) sales in September 2019 at 110,454 units against 151,512 units in the same month last year.
The decline, for the eleventh straight month for the firm, was again led by its entry-level segment that saw a dip of 42.6 per cent last month at 20,085 units.
ALSO READ: Maruti expects S-Presso to lift market mood
The carmaker has launched a new car in the segment — S-Presso to improve its sales in the segment. The company’s compact segment sales, which comprise models such as new Wagon R, Celerio, Ignis, Swift, Dzire and Baleno, were down 29 per cent at 77,264 units, while sale of the mid-size sedan Ciaz declined 72 per cent to 1715 units.
However, the utility vehicle segment proved to be the saviour for the firm as it recorded only a marginal 0.5 per cent dip at 21,526 units last month.
On month-on-month basis, Maruti’s sales grew over 18 per cent from 93,173 units in August 2019.
Similarly, Tata Motors’ PV sales declined 56 per cent to 8,097 units last month against 18,429 units in September 2018, while Mahindra’s PV sales fell by 33 per cent to 14,333 units.
Toyota Kirloskar sold a total of 10,203 units, down 18 per cent, while Honda sold 9,301units, down 34 per cent.
“While the market remained tough in September, the auto sales saw an uptick from this Aug’19 which is a positive sign. We hope the consumer sentiment further improves during the ongoing festive season, helping the sales momentum,” said Rajesh Goel, senior VP and director, sales and marketing, Honda Cars India.
CV records major decline
A major decline was witnessed in the commercial vehicle (CV) segment on Tuesday with CV major Ashok Leyland Ltd registering a drop of 57 per cent in its domestic market sales to 7,851 units in September 2019, while Tata Motors’ CV sales declined 45.4 per cent to 28,079 units as compared to 51,419 units in September last year.