Passenger vehicle sales fall for 9th consecutive month, drop 31% in July

Passenger vehicle sales fall for 9th consecutive month, drop 31% in July

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), vehicle sales across categories, including passenger vehicles (PVs) and two-wheelers, stood at 18,25,148 units in July against 22,45,223 units in the same month a year ago.

Similarly, domestic PV sales also saw the biggest fall in almost 19 years, slumping by 30.98 per cent to 2,00,790 units as compared with 2,90,931 units in the same period a year ago.

Subsequently, two-wheelers also declined 16.8 per cent to 1,511,692 units in the month under review. Commercial vehicles sales fell 25.7% to 56,866 units, SIAM said.

"The data shows urgent need for a revival package from the government".

The slowdown in the industry is largely on account of a bad festive season past year which led to the problem of higher inventories, tight liquidity with banks as a fallout of the NBFC crisis and an overall sluggish economy and low consumer sentiment. "Manufacturing, jobs and revenue to the government", Vishnu Mathur, director general, SIAM, told reporters on Tuesday, adding that vehicle and motorcycle manufacturers have already slashed about 15,000 jobs.

With plunging sales, almost 300 dealerships have been forced to close down leading to loss of around two lakh jobs, Mathur said.

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

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"We are hopeful of a revival package soon", Mathur said.

The domestic autos industry asked for tax breaks and easier access to finance for dealers and buyers at a meet with Indian government officials last week.

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.

"If this industry goes down, then everything gets hurt".

Cumulatively, the $119 billion automobile industry in India supports 37 million people directly or indirectly and accounts for 7.1 per cent of the country's GDP and 49 per cent of its manufacturing GDP.

In PV segment, market leader Maruti Suzuki India posted 36.71 per cent decline in its July sales at 96,478 units. Others such as Tata Motors Ltd, Mahindra and Mahindra Ltd and Renault have taken similar measures at their factories across India. Vehicle sales across categories registered a decline of 18.71% to 18,25,148 units from 22,45,223 units in July 2018, it added. Passenger vehicles are down 21.56 per cent at 913,410 units, commercial vehicles down by 13.57 per cent at 265,164 units and two wheelers at 6,525,763 units, 13 per cent less than a year ago.

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