Following the continued slowdown in the economy and tightening of credit norms by financial institutions, domestic wholesales of Maruti Suzuki India Ltd-- the country’s largest passenger vehicle manufacturer—slumped 36.3% year-on-year in July to 98,210 units. This is the sharpest decline in wholesales that the company has witnessed in the last two decades.

In the corresponding month last year, the company sold 154,150 units.

Domestic vehicle manufacturers are expected to report sharp decline in sales in July due to the overall slowdown and because of the high base effect of the first half of last fiscal.

For Maruti, sales in the compact segment, which includes best sellers like the Swift, Baleno, Dzire, and Wagon R, declined nearly 23%, while utility vehicle sales fell a shade above 38%. The decline in utility vehicle sales can also be attributed to the company’s announcement to withdraw its diesel offerings from April, 2020.

The company’s domestic vehicle sales fell more than 19% to 374,481 units in the June quarter, the sharpest drop since the third quarter of 2000-01. This has taken a toll on its financials as well as stock performance.

Maruti Suzuki’s net profit for the quarter ended June 30 witnessed the steepest decline in the last five years, while the operating margin contracted 455 basis points due to increased expenses and sharp fall in volumes. Net profit fell 27.3% year-on-year to 1,435.5 crore, while the company’s net sales during the period fell 14.1% to Rs18,735.2 crore.