The past two months haven’t been easy for automakers in India, especially the passenger vehicle segment. Sales volume has dropped for two months consecutively – 2.71% in July and 2.46% in August, as compared to the same period last year. Maruti Suzuki and Hyundai were among the worst hit, while Mahindra and Mahindra was able to buck the trend. In addition to domestic sales, exports, too, have shrunk by 7.37% year-on-year in Q1FY19. As the sales took a hit, the stock price of Maruti Suzuki and Tata Motors have corrected by 20% and 14% over the past two months.
Rising fuel prices and interest rates have played spoilsport. While analysts say overall demand has been weaker in comparison to expectation; the floods in Kerala at the onset of festive season in the state also hit demand. “Kerala alone accounts for 7.7% to 8% of industry volume,” says Arun Agrawal, a