The automobile industry is heading for a slowdown in the current financial year. Commercial vehicle sales have plunged by about 15 per cent in the first two months of 1996-97. The car segment was stagnant with a marginal increase of over two per cent against a whopping 41 per cent growth in April-May last year.

The two-wheeler segment also recorded a poor performance. Scooter sales were down by about 10 per cent, while moped sales dropped by about 11 per cent. Surprisingly, the motorcycles segment recorded a sharp growth of about 23 per cent in sales.

Sluggish sales have also resulted in a stock pile up, industry sources said.Sources in Association of Indian Automobile Manufacturers (AIAM), the apex body of the automobile industry, said that although the industry experienced an overall growth of 14 per cent last year, signs of a slowdown had started appearing as early as the second half of 1996-97.

The medium and the heavy commercial vehicles sales fell to 15,410 in April-May this year recording a negative growth of 19.85 per cent as compared to the 32.31 per cent growth for the same period last year.

Similarly, the light commercial vehicle category sales have also dipped from 20,617 vehicles to 18,682 in April-May this year, resulting in a negative growth of 9.58 per cent against a handsome growth of over 23.53 per cent last year during the corresponding period.

Maruti Udyog (MUL), the country's largest car manufacture recorded an increase in sales from 44,926 in April-May 1996 to 47,457 this year, but failed to retain last year's growth rate of 49 per cent.

Telco's car sales slumped to 298 cars in April-May this year as compared 1,215 cars sold last year during this period.

Sales of multi-utility vehicles also registered a 10 per cent fall, from 11,856 to 10,621 units, against a 34 per cent increase last year.

Barring the motorcycle segment, which recorded a 22.9 per cent growth for the first two months, the scooters category registered a negative growth rate of 9.36 per cent, mopeds a negative growth of 11 per cent and three wheelers a negative growth of 0.35 per cent.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.