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Written by : Tech Trends Team

Amid sales dip to 30.9 per cent in the automobile sector, Society of Indian Automobile Manufacturers (SIAM) urged for government support/revival package to prevent the crisis from worsening. According to the SIAM, passenger cars sales in the domestic market dropped to 1,22,956 units from 1,91,979 units sold during July 2018.

Industry observers cited high cost due to GST and lack of adequate liquidity as the main reasons for the sales slowdown. Among the other sub-segments of passenger vehicles, the number of utility vehicles sold in India went down by 15.22 per cent to 67,030 units in July 2019, while 10,804 vans were sold last month, down 45.68 per cent from the corresponding month of 2018.

Overall, passenger vehicle sales declined 30.98 per cent in July to 2,00,790 units from 2,90,931 units of the same month previous year. In the commercial vehicle segment, domestic sales were down by 25.71 per cent to 56,866 units last month.

Commenting on the situation, Vishnu Mathur, SIAM, Director General, said: "The auto sector accounts for nearly half of India's manufacturing output. If this industry goes down, then everything gets hurt. Manufacturing, jobs and revenue to the government."

Similarly, the data pointed out that three-wheelers' sales decelerated. The segment's off-take went down by 7.66 per cent to 55,719 units during the month in consideration. In addition, overall sales of two-wheelers, which include scooters, motorcycles and mopeds, edged lower by 16.82 per cent to 1,511,692 units. However, exports across categories were higher by 4.22 per cent to 414,596 units.