Barring tractors, auto sector faces stagnant sales

Tractor makers may be excited about the 87 per cent surge in sales, but other segments of the auto sector faced a sales slump ranging between 10pc and 47pc during 4MFY24. The rise in tractor sales to 17,296 units (Fiat and Massey Ferguson) also signals some brisk agricultural activities during July-Oct FY24, from 9,258 units in the same period last fiscal. In the car segment, the month-on-month (MoM) sales streak during Aug and Sept 2023 finally broke in Oct 2023, with sales dropping to 4,850 units from 5,909 in Aug and 6,410 units in Sept 2023. Sales in July 2023 were 3,702 units. Total car sales clocked in at 20,871 in 4MFY24 from 39,700 in the same period last fiscal, down by 47pc, owing to frequent plant shutdowns on issues of opening LCs, depressed demand, high auto financing due to unbearable interest rate, soaring prices of vehicles and rising petroleum prices. Barring Pak Suzuki Motor Company Limited, some major assemblers announced price cuts, but it seems that it could not lure buyers as expected. A whooping 57pc drop was recorded in 1,300cc and above segment (Honda City and Civic, Toyota Corolla and Yaris, Suzuki Swift, Hyundai Elantra and Sonata) to 8,523 units in the first four months of FY24 from 19,634 units in 4MFY23. The 1,000cc segments (Suzuki Cultus and WagonR) declined by 55pc to 2,302 units from 5,133 units.