The Indian auto sector is facing a crisis right now, with the loss of jobs, close down of retail centers, and halt in car manufacturing. Around 2.30 lakh auto sector jobs have been lost so, as per the data released by the Society of Indian Automobile Manufacturers (SIAM) showed.
Overall, the auto sector witnessed an 18 percent dip in sales in the month of July 2019. The worst-hit was the passenger vehicle category, which saw a 35 percent decline in sales. Sales of commercial vehicles declined 25 percent while the sale of two-wheelers was 16 percent lower than July last year.
The total domestic passenger vehicle sales of Maruti Suzuki India fell 36.1 percent to 93,173 units in August 2019. In August 2018, the figure stood at 1,45,895 units. Hyundai Motor India’s domestic sales dropped 16.58 percent to 38,205 units in August 2019 from 45,801 units in August 2018.
Honda Cars India saw its monthly domestic sales plunging 51.3 percent to 8,291 units in August 2019. The company had sold 17,020 units in the same month last year. The domestic passenger vehicle sales of Tata Motors have declined a massive 58 percent to 7,316 units in August 2019 from 17,351 units in the same month last year.
What’s the reason in sales drops?
Poor consumer sentiments and pressures coming from financial stress at the banking sector are key reasons why buyers are not buying cars in the current scenario,” Urban Science Managing Director (India) Amit Kaushik told India Today.
“Also, there is a lot of confusion amongst the buyers due to emission shift, electric vehicles and so on,” Kaushik added.
“The upcoming festive season is the only thing that all stakeholders are pinning their hope on, so it will be a very critical event which is eagerly awaited. Historically, the festive season has shown that sales do peak and help recover automakers’ lull months and inject margins to all players in the value chain,” IHS Markit Powertrain & Compliance Forecasting Principal Analyst Suraj Ghosh told India Today.
With increasing unemployment rate, people are not happy with the government.