Auto Sector: Passenger Vehicle Sales Drops 23.7% in September, 11th Month Of Decline
Mumbai: Amid the ongoing economic crisis, India’s passenger vehicle sales declined 23.7 per cent in September, a figure released by the Society of Indian Automobile Manufacturers (SIAM) said.
This means that the slowdown in vehicle sales has continued straight into the eleventh month at a time when the country’s auto sector is experiencing one of the worst recessions in decades.
The ongoing economic crisis in the country has severely affected the automobile sector, with the industry’s largest decline in sales.
According to data from the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle sales fell to 223,317 units in September.
In recent months, the country’s auto sector has suffered a massive slowdown due to low demand, which is the fourth largest in the world. There is a potential for massive job losses in India’s automotive industry, which directly and indirectly employs over 35 million people. The auto sector estimates the total production output of the Indian economy.
To deal with the crisis, many auto companies have resorted to declaring non-working days. This includes auto majors like Maruti Suzuki, Tata Motors and Ashok Leyland. Non-working days such as forced leave without pay. This is being done to reduce the production of vehicles in factories.
SIAM figures show that total passenger vehicle production in September declined by 18 per cent to 2,79,644 units as compared to a figure of 3,41,539 units in September last year.
On the export front, there is good news, however, for passenger vehicles. The segment saw an export growth of 5.64 per cent compared to the same month last year.
The two-wheeler segment recorded a double-digit decline in production and domestic sales in September. On a year-on-year basis, scooter sales declined by 16.60 per cent in September, while motorcycle sales declined by 23.29 per cent. Their production was delayed by 16 and 19 per cent Y-O-Y respectively.
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