The Society of Indian Automobile Manufacturers (SIAM) hopes that the Government will soon come up with a revival package for the auto industry which is currently witnessing a drop in sales for the 9th consecutive month. The decline in the passenger car sales, during the month of July 2019, is the worst drop reported since Dec 2000. The decline in passenger car sales in December 2000 was 39.86 per cent. The auto industry body says that the longer it takes for the government to bring in the revival package, the longer it will take the industry to get back to consistent sales.
According to the data released by the Society of Indian Automobile Manufacturers, for the month of July 2019, passenger vehicle sales in the domestic market stood at 200,790 units. In comparison, during the same month last year, passenger vehicle sales in the domestic market stood at 290,931 units, this accounts for a decrease of 30.98 per cent. In the domestic commercial vehicle segment, sales for the month of July 2019 stood at 56,866 units in comparison to 76,545 units during July 2018, resulting in a decline of 25.71 per cent. Sales in the domestic two-wheeler segment declined by 16.82 per cent with 1,511,692 units sold during July 2019 in comparison to 1,817,406 units sold during the same month last year. In the three-wheeler segment, domestic sales for the month of July 2019 stood at 55,719 units, in comparison to 60,341 units reported during July 2018, resulting in a decline of 7.66 per cent.
In a recent meeting with the Finance Minister Nirmala Sitharaman, the auto industry executives suggested a reduction in the GST rates along with the roll-out of a scrappage policy to help the industry get back on its feet. Sales across segments have gone down drastically and are failing to pick-up despite manufacturers offering heavy discounts and incentives. This has resulted in production cuts across manufacturers. In addition to this, there has been a significant increase in layoffs across the auto industry. In OEMs alone, close to 15,000 temporary jobs have been lost. While at the dealership level, more than 2 lakh personnel have lost their jobs. Talking about the automotive components manufacturers close to 13 lakh jobs are currently at risk due to the ongoing circumstances.