The auto industry which is undergoing one of its toughest times saw monthly passenger vehicle and car sales record steepest fall in August. Passenger vehicle sales plunged 31.57% year-on-year to 196,524 units in August while passenger car sales fell 41.09% to 115,957 units. This is the worst-ever fall for both the categories since Society of Indian Automobile Manufacturers (SIAM) started recording the data in 1997-98.
August was the 10th straight month that witnessed fall in car sales.Truck and bus sales dropped 39% while two-wheeler sales fell 22% to 1.5 million units.
Srivastava cited the US market which has seen robust auto sector in spite of Uber which is a big player there. “India, 46 per cent of the car buyers are first time users. It is an aspirational behaviour. People may use public transport like Ola and Uber to go to offices on weekdays, but still they buy a vehicle for the weekend outings with the family,” he said.
The finance minister has said the government is working on ways to deal with the situation and the goods and services (GST) Council will decide on cutting goods and services tax on automobiles, which attract a 28% rate now, at its meeting in Goa on September 20.
Maruti Suzuki had cuts its production in July by 25.15 per cent, making it the sixth month in a row when it reduced its output.
The carmaker had suspended production at its Gurugram and Manesar plants in Haryana for two days this month.
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