Auto sales see record fall in August in two decades as crisis continues - Hindustan Times
close_game
close_game

Auto sales see record fall in August in two decades as crisis continues

New Delhi | By
Jun 27, 2020 09:20 PM IST

Passenger vehicle sales plunged 31.57% year-on-year to 196,524 units in August, falling for the 10th straight month, the Society of Indian Automobile Manufacturers (SIAM) data showed, while passenger car sales fell 41.09% to 115,957 units.

The crisis in the Indian auto sector is deepening. The monthly passenger vehicle and car sales recorded its steepest ever fall in August, a record fall in 10th straight month.

This is the worst-ever fall for both the categories since SIAM started recording the data in 1997-98.(REUTERS)
This is the worst-ever fall for both the categories since SIAM started recording the data in 1997-98.(REUTERS)

According to data released by Society of Indian Automobile Manufacturers (SIAM) on Monday, passenger vehicle sales plunged 31.57% year-on-year to 196,524 units in August. Passenger car sales fell 41.09% to 115,957 units.

Unlock exclusive access to the story of India's general elections, only on the HT App. Download Now!

This is the worst-ever fall for both the categories since SIAM started recording the data in 1997-98. Truck and bus sales dropped 39%. Two-wheeler sales fell 22% to 1.5 million units.

Maruti Suzuki, India’s largest carmaker, had last week said it has suspended production at its Gurugram and Manesar plants in Haryana for two days. Maruti Suzuki has closed both plants simultaneously for two days for the first time.

The slump in auto sales had led to massive job loss in the sector. Automakers, parts manufacturers and dealers have laid off about 350,000 workers since April, Reuters reported.

Decoding the auto sector meltdown: Causes, effects and the way ahead

 

Last week, transport minister Nitin Gadkari had assured automakers that there were no plans to ban petrol and diesel vehicles. Gadkari said the the auto sector is witnessing a slowdown due to the global economic factors and said the finance ministry will find out a solution. He also assured the auto sector that their demands for reducing the sales tax on petrol and diesel will also be taken up with the finance ministry.

Automakers are hoping to buck the trends during the festive season for a turnaround of fortunes. October-November usually witnesses a boost in auto sales. Sales during the festive season constitute almost a third of the vehicles sold in a year.

Finance minister Nirmala Sitharaman had announced some measures to address the slowdown in the auto industry. She lifted the ban on purchase of new vehicles by government departments and allowed an additional 15% depreciation on vehicles acquired from August to March 2020. She also announced that BS IV vehicles purchased till 2020 will remain in operation for the entire period of registration.

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, April 15, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On