April 2019 has not really been a great time for car makers all over the country. In fact, most leading brands have witnessed a sizeable drop in their sales during this month, which has led to the question – why is this happening? Well, the answer is fairly simple. To begin with, ride-hailing services like Ola and Uber are seeing a steady increase in their consumer base. With more young millennials finding it convenient to just get a cab on-demand, the need for a permanent, full-time car grows smaller. Being a big part of the renting economy, millennials and other young consumers do not see the merit in buying a car, paying for gas, maintaining their vehicle, and dealing with extraneous costs when the ability to call a driver and go to a destination is right at their fingertips.
Another reason why it is possible that auto sales in India have been dropping is due to the rising gas prices in the country for both, petrol and diesel. With this, the expense of a car becomes quite unbearable for newer generations of consumers, making them favor public transportation and the convenience of a ride-hailing system.
Now that we know the basics of why auto sales are on the decline, let us go over the major car manufacturers and brands that have taken a hit in their sales.
Maruti Suzuki sales are down by a whopping 19.6%. In April of 2019, this brand sold only 1,33, 704 units of cars while they sold 1,64,978 in April of 2018. These sales figures include the units that have also been sold to Toyota as a part of the brand’s alliance with the same.
Hyundai motors have also seen a sharp decline in their sales. Their figures have dropped by 10.1%. In April of 2019, this brand sold a total of 42,005 units however, in the same month of 2018, they had sold 46,735 units of their private vehicles.
Finally, Tata Motors has also seen a huge decline, with its sales dropping by a total of 26%, making it the brand to suffer the largest hit. In April of 2019, the brand sold 12,694 units of their cars. However, in April of 2018, they had sold 17,235 units.
Indian consumers are changing their mindsets and are looking at different solutions to meet their needs. If this trend of auto sales declining continues, it will be hugely indicative of how the Indian market is choosing to evolve.