Passenger vehicle sales fall for ninth straight month, dive 31% in July

Marco Green
August 13, 2019

A quick glance at the sales statistics for the past 12 months reveal how overall sales have plunged, month on month. These PV numbers are the worst since December 2000, when sales were down 35.22 percent, along with passenger cars which slumped 39.86 percent then. "I think this is the time when the industry really needs the support of government coming out with a revival package", SIAM Director General Vishnu Mathur told reporters here.

Motorcycle and scooters sales fell 16.8% to about 1.51 million units, while passenger vehicle sales fell 36% to 122,956 units, the data showed.

The commercial vehicles segment registered a de-growth of 25.71% in July as compared to the same period a year ago, the organisation said.

The data also showed that domestic passenger vehicle production was down almost 17% in the month.

While SIAM has proposed an overall GST reduction to be brought on vehicles of all segments, rollout of the scrappage policy will give a push to new vehicle sales. Ram Venkataramani, President- Automobile Component Manufacturer Association (ACMA) said last month that if the slowdown continues, 10 lakh jobs throughout the auto and its ancillary industries are at risk.

"However, this time around all segments of the industry are witnessing decline in sales", he said.

"We are hopeful of a revival package soon", Mathur said. "However, it is still not clear what all elements would be included in it".

India's auto sector is cutting tens of thousands of jobs citing slumping sales of cars and motorcycles, with many companies forced to shut down factories for days and axe shifts.

When asked if the market has bottomed out, Mathur said that it is hard to predict that. It is an industry which contributes to nearly 49 per cent to the manufacturing GDP of the country and employs close to 37 million people directly and indirectly.

Two-wheeler sales in July declined 16.82% to 15,11,692 units compared to 18,17,406 units in July past year.

In the two-wheeler category, Hero MotoCorp registered a 22.9 per cent drop in sales at 5,11,374 units, while rival Honda Motorcycle and Scooter India (HMSI) saw sales decline by 10.53 per cent to 4,55,036 units.

The latest auto sales figures imply that India's GDP growth that has already slid to a near five-year low, is likely to show signs of further erosion for April-June when fresh data will be released later this month.

Other reports by Click Lancashire

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