India Light-Vehicle Sales Shift Into Reverse in August

MUMBAI – India’s August passenger-car sales tumbled 18.8% to 117,312, compared with year-ago, according to WardsAuto data. This is a significant reversal from the 9.0% increase over the year’s first seven months.

But gains were posted by light trucks, comprising SUVs, cross/utility vehicles and multipurpose vehicles, which claimed 48.1% of the light-vehicle market in August, up from 35.7% over the year’s first seven months.

That trend was reflected by Mahindra & Mahindra, whose 36,098 deliveries last month consisted of 33,996 diesel-powered light trucks and a mere 2,102 Ventro gasoline-fueled  cars built on a Renault platform. Mahindra sales totaled 279,164 in the year’s first eight months, up 27.0% from like-2011.

Tata has a similar advantage, except that its gas-engine portfolio is slightly larger than Mahindra’s. Tata’s August sales climbed 22.2% to 52,772 units, with light trucks accounting for two-thirds of the total. Hyundai India, which does not offer its own diesel engine, trailed with a 5.9% rise to 28,257.

Maruti Suzuki deliveries plummeted 33.6% as labor troubles shut down its plant for much of the month. Honda India, having renamed itself following the dissolution of its Siel joint venture, saw the lack of a powerful diesel engine and weak light-truck demand slash August sales 20.8% to 5,470.

Ford India sales increased 6.2% to 7,840 units, but GM India dropped 17.4% to 7,445. Audi deliveries rose 54.5% to 794, but BMW was flat at 809 and Mercedes-Benz fell 18.2% to 502. Fiat and Volkswagen deliveries tumbled 55.8% and 21.5%, respectively.

To boost falling sales, VW plans to launch the Up! small sedan in India next year.

New-vehicle launches helped boost Nissan India sales 185.5% to 3,950 units and Toyota deliveries 19.8% to 13,995.

August vehicle sales were depressed as the government raised diesel prices from Rs46.25 ($0.86) per liter to Rs52.45 ($0.97). However, auto makers are hoping the market will recover during the October-November festival season.