Vehicle sales crash historic 24%, crisis enters 11th month
Total CVs sales — a proxy for the economy's commercial health — steeply fell by 39%
Despite a 135 basis point rate cut since February and a number of measures announced by the Central government, including a sharp corporate tax cut, domestic vehicle sales plummeted for the 11th straight month in September.
Society of Indian Automobile Manufacturers (SIAM) data released on Friday showed that total commercial vehicle sales -- a proxy for the economy's commercial health -- steeply fell by 39% to 58,419 units in September.
ICRA had, earlier this month, said its outlook on the domestic commercial vehicle sector was negative, considering the sharp correction in vehicle sales amid slowing economic growth, overcapacity and tight financing environment.
Signs that the customers were still away from showrooms was clearly visible in passenger vehicles sales data which witnessed a decline of 23.69% to 223,317 units this September.
Passenger cars sales witnessed de-growth of of 33.4% to 131,281 units. In August sales were down 41%.
SIAM, President, Rajan Wadhera told reporters that the festive season retail sales that are monitored on a regular basis is "good" but avoided giving any sales forecast.
"The Navaratri sale has also been good and if we compare it to the sales from last year, the sale has been nearly 10-12% better," he said.
Wadera stressed that owing to number of government steps
and ongoing festive season, the consumer sentiments have improved. Consumer confidence, the Reserve Bank of Indian showed, dipped to six-year low in September.
Overall domestic automobile sales fell 22.41% in September 2019. Two wheeler sales - often tracked to analyse the rural markets health - was also down 22.09%.
Three-wheeler sales declined by 6.66% in April-September 2019 over the same period last year. Within three-wheelers, passenger carrier sales registered a de-growth of 6.37% and that of goods carriers declined by 7.98% in April-September 2019 over April-September 2018.