Car sales flat in September amid slowing economy

Market leader Maruti Suzuki, arch-rival Hyundai and Japanese car maker Toyota reported flat sales during September as high interest rates and rising fuel prices kept consumers away in a slowing economy.

Mahindra and Mahindra (M&M), which had been recording double-digit growth on the back of a high demand for diesel vehicles in earlier months, saw a reversal of fortunes as sales contracted by over 10 per cent during September.

M& M chief executive ( automotive division) Pravin Shah said, "The three-per cent hike in excise duty on SUVs and higher fuel prices have impacted sales. The demand uptick in the festive months ahead is also expected to be lower than last year." Tata Motors, which has lost out to M&M in the diesel segment, continued its bad run with a whopping 40.5 per cent fall in sales of its cars and SUVs during the month.

Selected models, including Honda Amaze and Ford EcoSport were the bright spots enabling these companies to record double digit growth albeit on a small base.

"We are happy to see a huge demand for Honda Amaze and Brio. The sales figures have set a positive tone for the upcoming festive season," HCIL senior vice- president ( marketing and sales) Jnaneswar Sen said.

Similarly, Ford India posted a 36.51- per cent increase in its domestic sales to 10,640 units.