Car sales in India fell by a record 19% last year as a slowing economy made buyers hesitant to spend on big-ticket parts and charge is expected to be low this year, the Society of Indian Automobile Manufacturers (SIAM) said on Friday.
Passenger car businesses fell to 1.81 million in 2019 from 2.24 million in 2018. Sales of sport-utility vehicles (SUVs), however, increased 5% helped by the launch of new designs, data published by SIAM showed.
Sales of passenger cars are supposed to be dull in the fiscal year starting April 2020 due to lingering weak market and the onset of more crushing emission standards that will drive up car costs, said Rajan Wadhera, president, SIAM.
- Also, 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.
- 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 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.
Last year august
Japanese carmaker Toyota Motor and South Korea’s Hyundai Motor are the most advanced in a string of businesses to momentarily halt some parts of production at plants to combat slumping sales, according to company memos to workers, reviewed by Reuters.
Passenger vehicle sales in July fell at the swiftest pace in nearly two decades.
The sales declines were triggered higher job holes in India’s auto sector, with many companies forced to shut down factories for days and axe shafts.
Sources have told Reuters that even more companies have now begun to lay off temporary workers as the slowdown worsens.
Despite India’s finance minister has urged for tax cuts, and an easier way to finance for sellers and consumers, to revive sales.
Maruti Suzuki cuts due to the massive sales decline in his passenger vehicles.
There were also reports that Maruti is also faced a decline in its Q1 profit that reported 27.3 per cent year-on-year decline in its net profit at Rs 1,435.50 crore for the first quarter ended June 30, 2019, dented by lower sales volume and higher depreciation expenses.
There were also the news 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.