Auto segment slump continues |
India`s automobile industry reported a heavy decline in domestic passenger vehicle sales in June, continuing the prolonged slump in market due to poor consumer sentiments. Market leader Maruti Suzuki India (MSI) said its domestic sales during the month were down 15.3 per cent at 1,14,861 units last month compared to 1,35,662 units in June last year. Mahindra & Mahindra, however, reported a 4 per cent growth in its domestic passenger vehicles sales in June. Mini segment, saw a slide of 36.2 percent to 18,733 units, compact segment, clocked 62,897 units last month while sales of utility vehicles, were at 17,797 units in June. The market sentiment continued to remain subdued, especially in the passenger vehicles segment. Industry continues to remain stressed due to low customer sentiments due to liquidity crunch. However, the market is expected to bounce back soon. The industry has been witnessing a continuous decline in domestic sales owing to several factors that have contributed to the weak consumer sentiment. The prevailing economic uncertainty, uncertainty on monsoon, high interest costs, tight liquidity and also the underlying apprehensions surrounding BS¬VI introduction in few months have steered the slowdown.
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