Industry

Auto industry woes continue as annual sales decline 13% in January; SIAM rules out PV fire sale

Auto industry woes continue as annual sales decline 13% in January; SIAM rules out PV fire sale

India’s automobile industry’s woes from 2019 has continued in to 2020. The automakers reported a 13 percent sales decline in January year-on-year. All major vehicle segments reported a slump in sales, the latest data from the industry body has showed.

Commercial vehicle sales were down 14 percent, slipping down to 75,289 units last month from 87,591 units sold in January last year, according to data from the Society of Indian Automobile Manufacturers (SIAM).

Sales in he passenger vehicle segment slipped from 280,091 units to 262,714 units, down 6 percent, in January YoY. Two-wheeler sales were down 16 percent YoY, while medium and heavy commercial vehicles (M&HCV) sales fell 34.6 percent at 22,534 units YoY.

However, total vehicle exports grew 15 percent at 3.96 lakh units YoY.

Overall, the auto industry in the country sold 2,151,544 units last month against 2,405,883 units sold in January 2019.

The industry is now banking on the ongoing Auto Expo 2020 and the Union budget, which was released presented earlier this month, to help revive growth.

The outbreak of coronavirus in China is expected to impact the auto industry.

However, SIAM head honchos have allayed fears. “Industry has apprehensions about the impact of the coronavirus; it’s still early days,” Rajesh Menon, director general, SIAM, told CNBC-TV18.

“Chinese manufacturing facilities were set to open today. Let’s wait for that We will be able to make an assessment in a few days.”

Mohan added that the impact of the budget pronouncements could reflect on two-wheeler sales. “If budget announcements for the economy show result, it will reflect on two-wheeler sales,” he said.

However, he ruled out the possibility of fire sale in the passenger vehicle category to revive growth. “[There is] no possibility of a fire sale in passenger vehicles as of now.”

[“source=cnbc”]

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Loknath Das

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