In reverse gear: PV sales decline to 18-year low
Automobile body SIAM has asked for urgent govt steps to revive industry
New Delhi: The downward spiral in the automobile sector continued in the second month of the current financial year, with passenger vehicle (PV) sales crashing 20.5% in May, the highest decline in last 18 years.
In September 2001, the vehicle sales had declined 21.91%.
PV sales in May 2019 were down for the seventh straight month to 2,39,347 units against 3,01,238 units in the same month last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM). In ten out of the last 11 months the sales in the PV segment saw a decline, barring October last year, when they were up 1.55%.
“The downhill drive continues in May. Retail sales figures are comparatively better than wholesale, which shows that the industry is taking steps to cut production. Inventory correction is taking place. We have not witnessed such slowdown in the last 15 years,” SIAM director general Vishnu Mathur said.
With this kind of a market situation, now is the time for the government to step in and come with some steps to stimulate growth, he said.
SIAM has also asked the government to reduce goods and services tax (GST) on all categories of vehicles from 28% to 18% .
SIAM deputy director general Sugato Sen further added, “Time has come for some serious intervention to be made by the government for stimulating demand in the market. We thought that post-election we will see some revival but that has not happened. This is unprecedented.”
Domestic car sales declined 26.03% to 1,47,546 units as against 1,99,479 units in May 2018.
Motorcycle sales last month were down 4.89% to 11,62,373 units as against 12,22,164 units in the same month previous year.
Total two-wheeler sales declined 6.73% to 17,26,206 units compared to 18,50,698 units in the corresponding period last fiscal.
Sales of commercial vehicles were down 10.02% to 68,847 units in May. Turn to p2