Car sales have been weak in June. The combination of a slowing economy and high interest rates helped keep customers away once again. India’s carmaker, Maruti Suzuki, saw a rise in sales, but this was because of the low base effect- since production had been dented last year by labour strikes. Sales at Maruti Suzuki rose 20% year-on-year to 96,597 units.
Meanwhile, most other carmakers saw modest gains or step declines in June. Hyundai sold 54,354units, a rise of 3.5%. Tata Motors’sale retreated 22% to just less than 21,994. And Ford India saw a 21% drop in sales to 7,281.
And while car makers are still struggling to rev up growth, new figures show factory output has actually increased in June. The HSBC Mark-it Purchasing Managers’ Index climbed to 55 in June, its highest level in four months. In May it was a slightly lower 54.8. Despite the good news, several concerns remain. The survey says manufacturers are still grappling with high input costs, which have gone up since May. The other problem is low demand abroad, which has meant for fewer new export orders.
Car sales weaken in June; factory output rises despite challenges; markets end in the red after profit booking.
And Indian markets dipped into negative territory on Monday, with investors booking profits after the previous week’s rally. Sensex went down by 31 points at 17,399 and Nifty declined 0.3 points closing at 5,279.