Hyundai Motor India Limited (HMIL), the Indian arm of the South Korean automobile manufacturer Hyundai has reported a decline of 8 percent in its sales for the month of August 2012. The company which is the second largest car manufacturer and the largest car exporter in India sold a total of 46,886 units in August 2012 in comparison to 51,012 units sold in the same month in 2011.
The domestic sales of the automaker grew by 5.9 percent selling 28,257 units in August 2012 in the Indian auto market in comparison to 26,677 units sold in the month in 2011. The company’s exports however saw a decline of 23.4 percent from 24,335 units exported in August 2011 to 18,629 units in the same month in 2012. The decline in exports was the major contributor to the overall decline in the company’s sales in August 2012.
According to Mr. Rakesh Srivastava Vice-President (National Sales) HMIL, the market scenario in the Indian auto industry is sluggish due to inflation and high fuel prices. Moreover, the shift in demand from petrol cars to diesel powered cars has resulted in low sales of petrol cars and a fall in the volume selling small car segment which is purely petrol driven.