Motor vehicle sale & production data for the month of September 2019 on lower side, worrier industry: CICU
Ludhiana, October 15, 2019: Chamber of Industrial and Commercial Undertakings (CICU) president Upkar Singh Ahuja has stated here today that the Indian automobile industry is going through a prolonged slowdown for the past twelve months. Monthly sales have seen the worst decline in the past two decades.
In a statement here, he added that data has been released by SIAM (Society of Indian Automobile Manufacturers) for the month of September’2019, which is alarming as Passenger Vehicle, Commercial Vehicle and 2 Wheelers sale and production is low. Minor growth of Passenger Vehicle export is there.
He revealed that as per the data, as compared to previous year, Exports of Passenger Vehicles have grown by 4.38%. However, Production and Domestic Sales of Passenger Vehicles have declined by 15.94% and 23.56% respectively. For Utility Vehicles, the Production and Domestic Sales have declined by 3.46% and 3.78% respectively. However, Exports have grown by 0.82%. Month-on-Month (September 2019 vs August 2019), total Passenger Vehicle Production, and Domestic Sales have grown by 0.89%, 12.00% respectively. However, Exports have declined by 13.72%.
He said data further reveals that as compared to previous year, Production, Domestic Sales and Exports have declined by 26.87%, 22.95% and 41.58% respectively. In the M&HCVs segment, Production, Domestic Sales and Exports have declined by 38.18%, 35.79% and 52.56% respectively. Month-on-Month (September 2019 vs August 2019), total Commercial Vehicle Production has declined by 0.54. However, Domestic Sales & Exports have grown by 11.16 % and 13.62% respectively.
He said data of 2 wheelers has also been released: As compared to previous year, Production of Scooter, Motorcycle and Mopeds have declined by 15.67%, 10.47% and 27.07% respectively. Month-on-Month (September 2019 vs August 2019), total Two Wheeler Production, Domestic Sales and Exports have grown by 4.94%, 8.61% and 1.65% respectively.
Overall as compared to previous year, the total vehicle Production and Domestic Sales have declined by 13.32% and 17.08% respectively. However, Exports have grown by 1.29%.
In the light of data released by SIAM, said Upkar Singh CICU request the Centre Government to take steps for the growth of industry, otherwise unemployment will increase drastically.
Adding, he said the automobile industry had also been lobbying for a stimulus in terms of a GST reduction on vehicles to improve consumer sentiment. However, no such move was announced by the minister. In response to the slowdown, the companies have resorted to job cuts and production cuts to keep costs in check. Automobile sales in India witnessed its sharpest decline in nearly 19 years in July, dropping 18.71 per cent, rendering almost 15,000 workers jobless over the past two-three months.
CICU president suggested some steps which needed to take on immediate basis: These steps included reduction of GST from 28% to 18% for Two Wheelers and its components, insurance of vehicle should not to be mandatory for 3 years, rate of Interest applicable by the banks should be decreased and registration charges of vehicle should be reduced.