The consistently poor performance of the Indian economy has hit the automobile sector the most with a continuous fall in car sales. For yet another month, the automobile sector has registered sluggish growth as India’s passenger vehicle sales slumped 23.7 per cent for the 11th straight month.
This would mean more lay-offs if the car sales fail to pick up. The passenger vehicle sales have dropped to 2,23,317 units from last year’s 2,92,660 units showing a decline of 33.4 per cent i.e. 1,31,281 units fewer cars compared to last year.
Society of Indian Automobile Manufacturers (SIAM) revealed that other than cars, vehicle sales across categories also went down by 22.4 per cent i.e 2,004,932 units’ decline due to sluggish economic growth. Other factors for the slump in car sales include floods and lack of funding from banks. Barring three-wheelers, there has been a double-digit decline in sales across vehicle segments.
As far as utility vehicles are concerned, the segment has registered an increase in sales by 5.5 per cent i.e. 816,25 units.
SIAM president Rajan Wadhera said the festive months of September and October have shown positive trends in terms of sales and added that some manufacturers have observed higher retails compared to last year.
For the medium and heavy commercial vehicle sales, a sharp decline has been witnessed due to less manufacturing. The total commercial vehicle sales fell by 39 per cent i.e. over 58,000 units.
In flood-hit states like Assam, Bihar and Maharashtra, dispatch of two-wheelers slowed down which impacted sales leading to a decline in sales of 1,656,774 fewer cars i.e 22 per cent slump. For two-wheelers like motorcycles and scooters, the sales declined by 23.2 per centre and 16.6 per cent respectively.
Responding to the Centre’s move to cut corporate taxes, India’s second-largest car manufacturer Maruti Suzuki lowered price on some models which hampered its sales for this month. The company registered a 24.4% drop in car sales.