Reply #49: Auto sales in April slide on declining demand

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http://www.moneycontrol.com/news/cnbc-tv18-comments/auto-salesapril-slidedeclining-demand_539696.html

ndia’s auto sales numbers in April have come as a major disappointment on the back of slowing demand due to rising financing rates. CNBC-TV18's Soniya Shenoy delves deeper.

Two-wheeler major Bajaj Auto's exports for the month doubled due to accounting on 32,000 units that were transited last month and not priced in then. This pushed the total sales to 3.67 lakh units. However, excluding that figure, Bajaj Auto has grown by just about 9% on a month-on-month basis at 3.35 lakh versus 3.07 lakh and on a year-on-year basis it has seen a growth of almost about 17% odd or so.

The management has indicated that they may hit a run-rate of 4 lakh units per month in this particular quarter if all goes well with its sales especially for its Discover and the Pulsar models.

Along with Bajaj Auto, there has been a slippage in Maruti Suzuki numbers on a month-on-month level as well. Its total sales are down 20% to 27,155 units, while exports are down 13% and domestic sales dropped almost 21%. In fact, exports are the biggest disappointment for Maruti Suzuki as they have dipped on a year-on-year basis by almost about 23%.