Continuation of decline in sales of cars and other vehicles has been going on for 10 consecutive months. Even in August, there has been a steep decline of 29 percent in car sales. Sales of cars of the country's largest car company Maruti Suzuki have Fallen by 36 percent. After this, the expectations of the auto sector are fixed on the GST meeting to be held on September 20, what relief the sector gets from the government.
In August, Maruti Suzuki sold just 93,173 cars, while in the same month last year, Maruti sold 1,45,895 cars. For the second consecutive month, Maruti's sales have fallen below 1 lakh cars. Apart from this, Hyundai Motor India and Mahindra & Mahindra have also performed poorly, while both companies have launched many new models in the last 12 months.
Vijay Ram Nakra, chief of sales and marketing, automotive division, Mahindra & Mahindra, said, "Auto industry sales have also declined in August due to several external factors. But we are optimistic and we hope that the coming festive season will be good.
The condition of the auto companies that did not launch new models has been worse. Honda Cars saw a decline of 51.3 percent in sales and Toyota's sales fell 24.1 percent. Tata Motors saw a 58 percent drop in sales. However, the company says that the lower figures are actually due to inventory correction.
The domestic auto industry is going through the worst phase ever. There has been a decline in auto sales in 13 of the last 14 months. Before this, in October last year, there was some increase in sales. The worrying thing is that the declining figures have been falling steadily in the last few months. Sales data released on Sunday by the country's top 6 car companies shows that there has been a steep decline of 29 percent in car sales in August.
On August 23, Finance Minister Nirmala Sitharaman made several announcements to improve the economy, including several announcements that gave relief to the auto sector. But the people of the industry say that nothing special will happen to them. The industry is constantly demanding that the GST rate on cars be reduced from 28 to 18 percent. Now the entire industry is eyeing the next GST Council meeting to be held in Goa on September 20, whether GST on cars is reduced in this important meeting.
