The slowdown of the Auto sector becoming Headache for Carmakers, Now reports of are coming that major carmakers like Mahindra and Tata said on Friday they would cut production at some plants in response to slowing demand that industry executives say has driven the sector into one of its worst downturns. Earlier Tata has also shut down some blocks at its Pune plant in Maharashtra main reason for the shut down the plant “challenging external environment.
Fell of Auto Sector can be seen in the share of Tata Motors and M&M which almost fell between 1.8% and 2.4 %. Due to this shutdown, companies are forced to cut the jobs. Workers who are working in the factories are facing a hard time they can be fired anytime due to slowdown. Government of India should take impotent measures towards the auto sector. India has large get great market in the field of automobiles.
Earlier there was a report, From many days Country’s Auto sector is facing a hard time reports said that India’s passenger vehicles sales slumped 17.54% to 2.25 lakh units in June from 2.7 lakh units in the year-ago period. While domestic car sales fell 24.07 % to 1.39 lakh units as against 1.83 lakh units in June 2018, total two-wheeler sales dropped 11.69% in June to 16.49 lakh units compared to 18.67 lakh units in the year-ago month, according to data released by the Society of Indian Automobile Manufacturers.
As festival season is near car dealers hoping and carmakers feel that there would be making some great money many car companies will launch some offers and new models of the car will be launched in markets by the companies it will invite car users to purchase the cars. That is why Diwali is only hoped for the Auto sector to bring back the rapture in the automobile business.
The auto industry organisation, Society of Indian Automobile Manufacturers (SIAM) requested the government to fulfil some critical steps including diminishing GST charges on cars from 28 per cent to 18 per cent to help companies during collapsing sales. The body on Monday also claimed for initiation of scrappage policy.
SIAM President Rajan Wadhera told that the market is yet to answer to the various proposals inducted by Finance Minister Nirmala Sitharaman last month. “The sales summary coming out from various firms for August 2019 has been very unfortunate with over 30 per cent depletion of sales for commuter vehicles. The commercial vehicle and two-wheeler sales are also significantly negative symbolising that the market has still not answered to the various projects launched by the Finance Minister last month,” he said in a statement.
Wadhera said that the series of decisions on loan availability and loss of the cost of credits do not seem to have bubbled to the NBFCs. NBFCs support the bulk of finance for the automotive industry. “The consumer opinion also continues to be weak and there is a trust debt in giving money to the sellers,” said Wadhera.