Auto sales plunge 19%; highest monthly de-growth in 19 years


New Delhi, Aug 13 (IANS): The domestic automobile industry on Tuesday sought revival measures from the government, even as data showed that overall sectoral off-take in July plunged 18.71 per cent, recording the highest monthly sales de-growth in the last 19 years.

Industry observers cited high cost due to GST and lack of adequate liquidity as the main reasons for the sales slowdown.

The data furnished by the Society of Indian Automobile Manufacturers (SIAM), showed that total sales of the Indian automobile sector declined by 18.71 per cent during July to 1,825,148 units, from 2,245,223 units sold during the corresponding month of the previous year.

"We hope the government would come out very soon with a revival package of sorts to arrest the de-growth and to bring the industry back to a growth path," SIAM Director General Vishnu Mathur said.

"We are hoping that the Finance Minister will issue some kind of measures to bring the industry back on the growth path."

Last week, automobile sector representatives met Finance Minister Nirmala Sitharaman to apprise her of the grim situation.

At present, the sector has proposed a reduction in GST rates, a scrappage policy and resolution of the liquidity and the non-banking finance company (NBFC) crisis.

The collapse of some large NBFCs has been cited as a major factor for the sales downturn as these companies used to provide the bulk of automobile financing.

Additionally, the data showed that passenger cars sales in the domestic market plunged by 35.95 per cent to 122,956 units, from 191,979 units sold during July 2018.

Furthermore, among the other sub-segments of passenger vehicles, the number of utility vehicles sold in India went down by 15.22 per cent to 67,030 units in July 2019, while 10,804 vans were sold last month, down 45.68 per cent from the corresponding month of 2018.

Overall, passenger vehicle sales declined 30.98 per cent in July to 200,790 units, from 290,931 units.

In the commercial vehicle segment, domestic sales were down by 25.71 per cent to 56,866 units last month, SIAM said.

Similarly, the data revealed that three-wheeler sales also decelerated. The segment's off-take went down by 7.66 per cent to 55,719 units during the month in consideration.

In addition, overall sales of two-wheelers, which include scooters, motorcycles and mopeds, edged lower by 16.82 per cent to 1,511,692 units.

However, exports across categories were higher by 4.22 per cent to 414,596 units.

  

Top Stories

Comment on this article

  • Mlorean, Kudla

    Wed, Aug 14 2019

    Triple Talaq and Article 370 is just to keep the public mind diverted from the current economical crisis in India.

    Also Indian currency is gone to drains. I remember in 2008 / 2009 INR was one of the TOP strongest currencies in the world

    DisAgree Agree Reply Report Abuse

  • Jossey Saldanha, Nashville

    Wed, Aug 14 2019

    Very difficult to convince Chaddis ...

    DisAgree Agree Reply Report Abuse

  • Sms, Kundapura

    Wed, Aug 14 2019

    This government focusing on gau products. Then how can you expect something other than that?

    DisAgree Agree Reply Report Abuse

  • Vishal, Mangalore

    Tue, Aug 13 2019

    The slump in the auto sales brings in its wake a slump in other businesses too. When a vehicle is not manufactured, that much less steel is used thereby affecting the steel industry too. It affects the tyre manufacturers as the demand for tyres comes down. It affects the seat manufacturers also. Going a step ahead, the demand for drivers goes down and so on. It is not just the auto industry that takes a hit. It has a cascading effect on the economy. The sad part, however, is the government is looking the other way and acts as though it is not its business to revive the economy. Reviving the economy doesn't seem to be their priority. Their priority lies in buying the MLAs to form the state government and their priority lies in turning this country into a Congress mukht nation.

    DisAgree Agree Reply Report Abuse

  • Roshan, Mangaluru

    Tue, Aug 13 2019

    India suffering one of the worst economic crisis. There are cores of job losses already and things are going to get worse. This is a Modi led BJP made crisis.

    BJP always accused Congress keeping people poor for votes, but now it is clear BJP is making good practice of making people poor.

    Well, people these days have easy way to show their belief and patriotism. All you have to say is Amen, jai shree ram, jai hind or so... without realising the guy who posting those clips is selling your feelings for money.

    It's too late already.

    DisAgree [2] Agree [12] Reply Report Abuse

  • ad, mangaluru

    Tue, Aug 13 2019

    Under Modi watch. India is going under in modis development. Only thing going up is religious bigotry like revocation of Art 370 and triple Talaq.

    DisAgree [2] Agree [8] Reply Report Abuse


LEAVE A COMMENT

Title : Auto sales plunge 19%; highest monthly de-growth in 19 years


 
 
 
 

 
You have 2000 characters left.

Disclaimer:

Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Daijiworld.com will not be responsible for any defamatory message posted under this article.

Please note that sending false messages to insult, defame, intimidate, mislead or deceive people or to intentionally cause public disorder is punishable under law. It is obligatory on Daijiworld to provide the IP address and other details of senders of such comments, to the authority concerned upon request.

Hence, sending offensive comments using daijiworld will be purely at your own risk, and in no way will Daijiworld.com be held responsible.


Security Validation

Enter the characters in the image