Passenger vehicle sales have fallen 20.6% in May. It is the steepest fall in 18 years amid weak demand, liquidity crunch and an economic slowdown. According to data released by industry body Society of Indian Automobile Manufacturers (Siam), a total of 2.39 lakh passenger vehicles were sold in May 2019, down 20.6% from 3 lakh units in the same month in the previous year. In April, passenger vehicles were down 17%.
On top of that automobile companies are battling with huge stockpile of unsold vehicles despite offering deep discounts and freebies. The industry is now petitioning the government for a cut in GST rate.
We have never seen such a prolonged spell of negatives. it is tough. markets can de-grow sometimes, but this was unexpected. we didn’t prepare for this.
vikas jain, hyundai india
Despite the government’s best efforts and assurances, numbers are baring out the depressing truth. People generally buy cars when they are confident about their personal financial situation. Also, when there is steady job growth, more and more young people go for high value buying. But with companies failing to sell their inventory even at a discount and tight credit cycle are proving that the situation in the country is quiet grim. ThenTthere is an ongoing trade war and protectionist policies adopted by different countries provide little scope of boosting export. Narendra Modi who was recently re-elected to the Prime Minister’s Chair has his task cut out as an aspiring India expects him to do something to fulfil the promises he made.
