Sales of cars and utility vehicles continued to decline in January as the worst slowdown in the sector in almost two decades showed no signs of recovery.
Domestic sales of passenger vehicles tumbled 6.2 percent year-on-year to 2,62,714 units in January, according to data released by the Society of Indian Automobile Manufacturers.
Cars sales fell 8.1 percent to 1,64,793 units whereas sales of utility vehicles rose 2.57 percent year-on-year to 84,929 units in January. Monthly factory-gate shipments of commercial vehicles fell the most across categories. Sales of CVs plunged 14.04 percent year-on-year to 75,289 units.
Auto and component makers—which together contribute more than 7 percent to the nation's gross domestic product—have been forced to lay off contract workers and dealerships shut showrooms as Indians cut back spending amid an economic slump. Slowing consumption dragged down the economic growth to its slowest pace in more than a decade.
Sales of vehicles continued to be stressed due to the rising cost of vehicle ownership and slower growth in GDP, Rajan Wadhera, president of SIAM, said. “We are hopeful that the recent announcements of the government on infrastructure and the rural economy would support the growth of vehicle sales going forward, especially in commercial vehicle and two-wheeler segment.”
Here's how other segments fared in January...
- Scooter sales tumbled 16.21 percent over last year to 416,594 units.
- Motorcycle sales declined 15.17 percent year-on-year to 871,886 units.
- Two-wheeler sales fell 16.06 percent year-on-year to 1,341,005 units.
- Three-wheeler sales rose 12.69 percent to 60,903 units.
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