Car sales droop 36% in July amid auto sector crisis
Mumbai : Domestic passenger vehicle sale declined to 2,00,790 units in the month of July, marking a year-on-year decline of 30.98 per cent, data from industry body SIAM or Society of Indian Automobile Manufacturers revealed on Tuesday.
The report claimed that the auto sale figures declined for the straight ninth month amid a contraction across segments as the "auto industry downturn" deepened.
Out of the total passenger vehicle sales, the figure for the passenger car segment declined 35.95 per cent to 1,22,956 in July, according to SIAM data.
However, production of passenger cars stood at 205,194 units in July, down 20.08 per cent compared with the year-ago period.
"The data shows urgent need for a revival package from the government," SIAM director general Vishnu Mathur told reporters. "The industry is doing everything possible to increase sales but it needs government support to prevent the crisis from worsening."
With sudden slowdown in the auto sector, massive job cuts have also been reported in the industry, with initial estimates suggesting that automakers, parts manufacturers and dealers have laid off about 3,50,000 workers since April, news agency Reuters quoted a senior industry source as saying.
A total of 61,104 passenger vehicles were exported last month, marking a decline of 4.43 per cent compared with the year-ago period. Commercial vehicle exports dropped 32.87 per cent to 5,794 units.