The country’s auto industry is going through a bad phase. In July, sales of passenger vehicles have come down again. This is the 9th consecutive month when there has been a slowdown in the sales of passenger vehicles. In these conditions, the auto industry has demanded an immediate relief package from the government.
31 percent drop in Passenger vehicle
According to news agency PTI, the sales of passenger vehicles have come down by 30.98 percent in the month of July. A total of 2 lakh 790 vehicles were sold in July 2019. In July 2018, this figure was on 2 lakh 90 thousand 931 vehicles. Siam, an organization of Indian vehicle manufacturers, said that when it comes to the domestic market, car sales fell by 35.95 percent to 1,22,956 vehicles in July 2019.
A year ago, in July 2018, 1,91,979 vehicles were sold. Similarly, domestic sales of motorcycles stood at 9,33,996 units last month. This is 18.88 percent less than a year ago. The total two-wheeler sales in July were 15,11,692 vehicles. A year earlier this figure was 16.82 percent. Commercial vehicle sales have also seen a decline and decreased by 25.71 percent to 56,866 vehicles from 76,545 vehicles in July last year.
Urgent relief package needed
Siam director general Vishnu Mathur has demanded financial help from the government in these conditions. He said, “It is clear from the data that a revival package is needed from the government immediately.” Urgent cooperation is now needed to prevent this crisis from growing.
Nearly 3.5 lakh jobs lost
Due to the huge drop in sales, the jobs of about 3.5 lakh people have been lost in the auto sector since April. In view of this, the giants of the auto sector have demanded a variety of incentive packages including reduction in GST. Recently, representatives of the auto industry including Pawan Goenka, managing director of Mahindra & Mahindra, RC Bhargava, chairman of Maruti, Pawan Munjal of Hero Moto, representatives of Siam and Fada met Finance Minister Nirmala Sitharaman. Explain that this industry contributes about 7.1 percent to the country’s GDP.