Toyota has witnesses a decline of 24% in year-on-year sales in July but the Innova Crysta and the Fortuner has been doing well and recorded positive growth.
The slowdown in the Indian Auto industry continues as manufacturers continue to report falling sales. Toyota Kirloskar Motors came out with their sales report and they recorded a 24% drop in year-on-year sales. Toyota sold a total of 10,423 units of vehicles in the domestic market in July 2019 as compared to 13,677 units of vehicles that were sold in the same period last year.
Toyota also exported 868 units of the Etios series, thus selling a total of 11291 units of vehicles in July. The company recorded a total drop in sales by 22%. N. Raja, Deputy Managing Director, Toyota Kirloskar Motor said, “The industry is deeply concerned with the increasing pressure of low customer sentiment faced by the sector. The high insurance costs, rise in taxes and liquidity crunch across the non- banking finance segment, tightening of lending norms have significantly affected the domestic sales in the last few months.”
Toyota is also trying to lend maximum support to their dealers by maintaining lean inventory in these difficult times in the industry. However, its not all bad news for Toyota. The Toyota sales report also shows that he Innova Crysta and the Fortuner – two very popular vehicles from the Japanese manufacturer have recorded a growth in their individual sales in spite of overalls sales being down. The Innova Crysta’s market share in between May-June, 2018 was at 43% whereas this year, it rose to 45% for the same time period.
The Indian automotive market has been low since the beginning of this current financial year itself. Customer sentiments have been poor due to increased prices and low credit availability, liquidity crunch and one time payment of insurance premium. However, carmakers have also had to check their inventories due to the incoming of the BS-VI norms because of which the wholesale numbers are low.
All carmakers are hopeful that buying trends will grow with the upcoming festive season and the government is also expected to take necessary steps to improve liquidity in the market by capital infusion in the banks. There has also been a plea by the auto industry to reduce the GST rates to a much rationalized level (28% to 18%) to counter the situation and bring up sales again.