Domestic passenger vehicles sales in India plunged 30.98 per cent to 2,00,790 units last month, data from industry body SIAM or Society of Indian Automobile Manufacturers revealed on Tuesday. The drop in sales is the worst since December 2000, when the industry sold a fifth of the vehicles it sells currently. The sales report highlighted that passenger vehicle sales in the country declined for the ninth month in a row amid a contraction across segments as the “auto industry downturn” deepened. Out of the total passenger vehicle sales, the figure for the passenger car segment declined 35.95 per cent to 1,22,956 in July, according to SIAM data.
It is the worst auto sector crisis since December 2000. The July 2019 sales witnessed a drop of 18 per cent as compared to July 2018. The sales of passenger vehicles fell by 35 per cent in July, 2019.
Around 2.30 lakh auto sector jobs have been lost yet. SIAM data also showed that 300 dealerships have shut down in recent times and that one million jobs have been hit in the auto component manufacturing industry.
The low demand is caused by the lack of credit for car buyers and uncertainty due to regulatory changes. That, coupled by a lack of financing has spelt doom for the Indian auto industry.
Industry leaders have warned of massive job cuts as manufacturers look to halt production.
SIAM’s Director General Vishnu Mathur said that the auto industry needs a revival package from the government.
The auto industry representatives had a meeting with Union Finance Minister Nirmala Sitharaman recently and the sector is hoping that it will revive soon.