SUVs lose speed as car sales drop in July

AutomobileS: Siam numbers show drop for nine consecutive month

Domestic passenger car sales fell an annual 7.4 per cent in July this year,the ninth straight month of declines,as high fuel costs and interest rates continued to hammer down demand. More importantly,the utility vehicles (UV) segment,which has been a consistent performer so far,fell for the first time in over four years in July while the medium commercial vehicles dipped for the seventeenth month in a row.

According to the latest data released by the Society of Indian Automobile Manufacturers (SIAM),domestic passenger car sales dipped to 1,31,163 units in July this year from 1,41,646 units in the same month of 2012 while total sales of commercial vehicles dropped by 14.93 per cent to 55,301 units from 65,008 units in the year-ago period,heavy and medium commercial vehicles (M&HCV) sales were down 19.88 per cent at 18,611 units.

It is a very serious situation for the industry. The original equipment manufacturers (OEMs) have started adjusting temporary and casual workforce, SIAM Director General Vishnu Mathur told reporters here.

Story continues below this ad

Even though he did not share the exact number of temporary workers affected by the downsizing,Mathur said: In the manufacturing sector,not restricted to auto sector alone,companies by and large tend to keep more temporary and casual workers.

The UV segment,which had witnessed sales rising by 52 per cent in FY13,registered a drop of 17.53 per cent at 37,010 units in July,the data released on Monday showed.

Mathur said in the wake of the continuous decline in automobile sales,SIAM has approached the government seeking stimulus package,including reduction in excise duty,fleet modernisation and put an end to ban on new government vehicle purchase that has been on since May last year. The overall economic factors,high interest rates,fuel prices and low sentiments continue to hurt demand,although new model launches such as Honda Amaze,Ford EcoSport have been able to bring some excitement in the market,he added.

Two-wheeler sales during the month declined by 0.06 per cent to 11,31,992 units from 11,32,696 units in the same period of previous year. The scooter segment was the only exception with an almost 10 per cent jump in volumes at 2.71 lakh units.

Tags:
Car sales
interest rates
SIAM
Society of Indian Automobile Manufacturers

Police personnel seen to control the situation during a massive protest over the statehood demand and the inclusion of Ladakh under the Sixth Schedule, in Leh on Wednesday. (ANI Video Grab)

Statehood protest takes violent turn in Ladakh, BJP office set ablaze in Leh

India5 min ago

Protests in Ladakh turned violent as students and youth organisations demanded statehood and Sixth Schedule status. Two elderly protesters fainted, prompting a shutdown call. A BJP office and security vehicle were set on fire. Activist Sonam Wangchuk urged for a peaceful approach. The demand for Sixth Schedule status is due to Ladakh's tribal-majority population and direct central administration.

View all shorts

Live Blog