Affected by the slump in the Indian auto market, Hyundai Motor India’s domestic volumes witnessed a decline in May 2019 at 42,502 units, dropping by 5.6 per cent as against 45,008 units sold in May 2018. Exports, however, saw a major increase in volumes by 50.8 per cent with the company shipping 16,600 units last month, as against 11,008 units in May last year. Despite the poor domestic performance, the automaker’s overall volumes for the previous month still over the red line. Hyundai sold a cumulative (domestic+exports) 59,102 units last month, growing by 5.5 per cent over 56,016 units sold during the same period last year.
The drop in domestic volumes isn’t too different from other manufacturers that have reported a steeper decline in sales for the last month. Both Maruti Suzuki and Tata Motors registered double-digit de-growth, while Mahindra sales dropped by just one per cent. Meanwhile, sales for Hyundai are expected to improve in the coming months, backed by the strong demand for the newly launched Venue subcompact SUV. With booking numbers at 20,000 and counting, the new offering is off to a good start and will help stabilise the Korean auto giant’s falling numbers.
With the elections have come to a close and the new government in power, the buyer sentiment is also expected to see a favourable change towards the purchase of new vehicles. The auto industry is also looking forward to a normal monsoon this year to boost growth in rural areas. Hyundai also has a few new products lined up for a launch this fiscal that will include the Kona Electric SUV and the Tucson facelift. The automaker has also repositioned itself as the country’s first smart mobility solutions company, diversifying its presence in other vehicle categories.