Slowdown in automobile sales continues for the ninth month, posts a decline of 12.25 per cent
The Indian automobile industry is facing one of its worst slowdowns in the last two decades. SIAM (Society of Indian Automobile Manufacturers) has released the sales figures for the month of August 2019. The report mentions that the industry produced a total of 1,20,20,944 vehicles that included passenger vehicles, commercial vehicles, three-wheelers, two-wheelers and quadricycles in April-August 2019 as against 1,36,99,848 in April-August 2018, registering a decline of 12.25 per cent over the same period last year.
The sale of passenger vehicles declined by 23.54 per cent in April-August 2019 over the same period last year. Within the passenger vehicle segment, the sales for passenger cars, utility vehicles and vans saw a decline of 29.41 per cent, 6.27 per cent and 34.04 per cent respectively in April-August 2019 over the same period last year.
The overall commercial vehicle segment registered a decline of 19.00 per cent in April-August 2019 as compared to the same period last year. Medium and heavy commercial vehicles declined by 28.98 per cent and light commercial vehicles declined by 12.70 per cent in April-August 2019 over the same period last year. The sales of three-wheelers sales declined by 7.32 per cent in April-August 2019 over the same period last year. Within the three-wheeler segment, passenger carrier sales registered a decline of 7.25 per cent and goods carrier declined by 7.64 per cent in April-August 2019 over April-August 2018.
Even the two-wheeler manufacturers in India have had a tough going with a decline of 14.85 per cent in April-August 2019 over April-August 2018. The sales of scooters, motorcycles and mopeds declined by 17.01 per cent, 13.42 per cent and 20.39 per cent respectively in April-August 2019 over April-August 2018.
Nitin Gadkari addressing automobile and ancillary manufacturers at the 59th SIAM annual convention
At the recently held 59th SIAM Annual convention, Nitin Gadkari, Minister of Road Transport and Highways of India, addressed the automobile and ancillary manufacturers, "We know what you are worried about now. The government is also concerned. The slowdown has a connection with employment potential as well as the growth of the country. The finance minister, Nirmala Sitharaman is trying to find solutions." He also added, "The government is not proposing to ban petrol and diesel cars in the country. The Rs 4.50 lakh crore automobile sector provides a lot of jobs and exports too have increased. But the government is facing some problems. First among which is the cost of import of crude oil. The second is pollution and the third is road safety." More on Nitin Gadkari's address at the SIAM Annual convention here.