The turbulent times for the automotive industry continues as major car manufacturers witnessed a huge drop in sales. Toyota Kirloskar Motor sold a total of 10423 units in the domestic market this month compared to 13677 units in the same period as last year thus registering a drop in sales of 24 per cent. The company exported 868 units of the Etios series this month thus clocking a total of 11291 units. The company's total sales were down by 22 per cent
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."
The company also said that it is trying to lend maximum support to our dealers through the hard times faced by the industry by maintaining lean inventory. The company's two products - the Innova Crysta and the Fortuner have seen a good growth even as sales trends dip. The company said that the Innova Crysta's market share in the month of May-June was 45 per cent whereas last year during the same period it stood at 43 per cent
The company hopes that the buying sentiment will change with the upcoming festive season. It also expects the government to step in to take necessary steps for improving liquidity in the market by capital infusion in the banks should also be of some help. The overall auto industry also expects the GST level to be rationalised to a lower level (28% to 18%) to accommodate the downturn in sales.