The domestic car sales continued to fall for the seventh consecutive month, leading to worries about the industry resorting to lay-offs to cut costs. As per the Society of Indian Automobile Manufacturers (SIAM), the sales of cars fell by 12 % to 1.43 lakh units in May against 1.63 lakh units in the corresponding month last year.
This is the longest stretch of consecutive decline in car sales witnessed so far. Even during the 2008-09 downturn, there was no such prolonged period of fall. Led by Maruti Suzuki India, car sales of companies such as Fiat, Ford, General Motors, Mahindra & Mahindra, Nissan and Tata Motors have declined in the month as compared to May last year.
However, the sales of Honda Cars India, Renault India and Volkswagen India have grown during the month. Besides, motorcycles sales have also declined, by around 1% to 8.81 lakh units during the month against 8.87 lakh units in May 2012. But, overall two-wheelers sales have risen by 1% to 12.06 lakh units last month compared with 11.92 lakh units in same month previous year.
As per analysts and companies, rupee depreciation against the dollar may impact vehicle sales, if the similar rates continue.