Indian automobile industry July 2019 sales plunge to new low

India's Passenger Vehicles Sales Sink for Ninth Month in July

India's Passenger Vehicles Sales Sink for Ninth Month in July

Passenger vehicles reported steepest decline in July 2019 with a dip of 31 per cent to 200,790 units according to data released by Society of Indian Automobile Manufacturers (SIAM).

India's domestic passenger vehicle sales in July dived at the steepest pace in almost two decades, an auto industry body said on Tuesday, as a financing crunch deepened a crisis in the country's autos sector and triggered large-scale job losses. Out of the total passenger vehicle sales, the figure for the passenger auto segment declined 35.95 per cent to 1,22,956 in July, according to SIAM data.

Explained: Car sales down, what does this mean for the economy? In fact, all vehicle categories witnessed decline in sales during the month. But the economic downturn that the industry is facing has bigger implications than just falling sales numbers. 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. "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. The government's response was extremely positive and there was a keen desire to understand the scenario. The industry is doing all it can to promote sales.

Seeking urgent government help, Mathur said, "We are hoping that the government would soon come out with a revival package..." Also, the most crucial expectation of the industry body is a re-strengthening of the financial sector, particularly the ailing NBFCs. "We are now banking upon the festive season, a largely good monsoon, BS6 pre-buying and the revival package to bring the industry back on its feet", Mathur said. 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.

While automakers are not the right places to observe a dramatic layoff pattern, it is more visible at the vendors and the dealers, which are unable to sustain resource costs for a prolonged period. "Manufacturing, jobs and revenue to the government", Vishnu Mathur, director general, SIAM, told reporters on Tuesday, adding that auto and motorcycle manufacturers have already slashed about 15,000 jobs.

The ball is in the Finance Minister's court and the Ministry of Road Transport.

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