• Friday, August 23, 2019

Slowdown Blues: India's passenger vehicles sales drop 31% in July; record 9th straight dip

Discussion in 'Central & South Asia' started by Simurgh, Aug 14, 2019.

  1. Simurgh

    Simurgh FULL MEMBER

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    India's domestic passenger vehicle sales fell for the ninth straight month in July, an auto industry body said on Tuesday, amid a deepening crisis in the country's automobile sector that has triggered large-scale job losses.

    Sales of passenger vehicles to car dealers fell 30.9% to 200,790 in July, data released by the Society of Indian Automobile Manufacturers (SIAM) showed. Commercial vehicles sales fell 25.7% to 56,866 units, SIAM said.

    Motorcycle and scooters sales fell 16.8% to about 1.51 million units, while passenger car sales fell 36% to 122,956 units, the data showed.

    The data also showed that domestic passenger vehicle production was down nearly 17% in the month.

    "The data shows urgent need for a revival package from the government. The industry is doing everything possible to increase sales but it needs government support to prevent the crisis from worsening," Vishnu Mathur, director general of SIAM, told reporters in New Delhi.

    India's S&P BSE auto sector index has fallen 23% this year, with the country's top automaker Maruti Suzuki's market valuation falling 18.3% since the beginning of this year.

    The fall in car sales comes at a time when demand for consumer goods is falling and what is seen as a major sign of an economic slowdown in India, amid a liquidity crunch in the country's shadow banking sector that has impacted the availability of credit in the market.

    India's auto sector is cutting tens of thousands of jobs citing slumping sales of cars and motorcycles, with many companies forced to shut down factories for days and axe shifts.

    The downturn - regarded by industry executives as the worst ever suffered by the Indian auto industry - is posing a big challenge for Prime Minister Narendra Modi's government as it begins its second term at a time when India's jobless numbers are climbing.

    The domestic auto industry demanded tax cuts and easier access to finance for dealers and buyers at a meeting with Indian government officials last week to discuss the sector's woes, in an effort to revive sales that have slumped.

    source: https://www.businesstoday.in/sector...cles-sales-drop-31-per-cent/story/372218.html
     
  2. 1Paki$tani

    1Paki$tani FULL MEMBER

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    Car Industry is struggling world wide.
     
  3. Pakistan Space Agency

    Pakistan Space Agency BANNED

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    Why is India suffering? This isn't going to impact India's vision of becoming a Super Power by 2020, is it?
     
  4. Yaseen1

    Yaseen1 SENIOR MEMBER

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    India end is near
     
  5. HAIDER

    HAIDER ELITE MEMBER

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    over 30,000 showroom closed in India.
     
  6. TruthSeeker

    TruthSeeker PDF THINK TANK: ANALYST

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    Obviously Indians are unselfish world citizens and are cutting back on fossil fuel use to save the planet. Good job India!!!!
     
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  7. xyxmt

    xyxmt ELITE MEMBER

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    NO
     
  8. kmc_chacko

    kmc_chacko FULL MEMBER

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    One of the reason is Government has decided to implement BS-VI emission norms in the Delhi-NCR region from 1 April 2018 and in rest of the country these will be implemented from 1 April 2020. Due to this Automobile sector has discontinued may diesel vehicles and switching to petrol and only Maruthi Suzuki presently is producing BS-VI compatible vehicles and rest are struggling to switch over.

    https://economictimes.indiatimes.co...they-will-impact-you/articleshow/66362907.cms
     
  9. Type59

    Type59 FULL MEMBER

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    Credit crisis. Alot of shadow banking institutions are struggling. Modi is very intelligent by creating a distraction.
     
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  10. fallstuff

    fallstuff SENIOR MEMBER

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    It's not only passenger vehicles ( cars, motor cycles ) only , commercial vehicles such as bus and trucks are also down.
     
  11. Kabira

    Kabira ELITE MEMBER

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    What is BSIV equivalent in Euro standard? In Pakistan ancient euro 2 is the standard in new cars. Sometimes I feel these standards were waste of resources with mass production EV around the corner. If only oil companies didnt prevent more investment in EV through out 90’s.
     
  12. kmc_chacko

    kmc_chacko FULL MEMBER

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    BSIV = EURO IV

    BS-VI = Euro 6
     
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  13. letsrock

    letsrock FULL MEMBER

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    BS reason. The issue is fall of consumer demand. Not supply side issues.