Tuesday, May 14, 2019
By Kamal Swami
Scoop: April 2019 Resulted As The Worst Month For The Indian Auto Industry
According to the sales statistics revealed by the Society of Indian Automobile Manufacturers (SIAM) the sales in the Indian car market declined up to 15.9 percent during the month of April 2019. This is one of the worst sales records in eight years and it will take time to revamp the situation and will mainly depend on various factors like favorable monsoon and also the new economic policy adopted by the incumbent government, which will resume its term by the end of this month. The data provided by the SIAM reveal’s that the total number of vehicles sold during the month of April 2019 was 2,001,096 which is 379198 units less than compared to 2,380,294 units sold last year during the same period.
Although there is a huge decline witnessed among all the segments, but the most affected segment of this decline is the segment of passenger vehicles (PVs) which has recorded the decline of 17 percent in the sales. It would be important to notice that PV segment is one of the profitable segments of the automobile industry from the revenue generation point of view. There were 247,541 units sold during the month of April as against 298,504 units sold niche of this segment. The two wheeler industry is also reported to witness the huge decline in the sales. The sales of scooters declined by 26 percent, whereas the sales of motorcycles which is one of the highly preferred vehicles in the rural areas also recorded the decline of 16 percent in sales during the month of April 2019.
Commenting on the situation Mr. Vishnu Mathur, Director General, SIAM, said, “some kind of recovery in sales will come only after the general elections as consumers resume discretionary spends. “Demand in the rural economy is not looking great and it has reflected in the sales of motorcycles, which were down by 11.8 per cent. We cannot expect a sudden recovery in sales anytime soon,”.
In the words of Mr. R.C. Bhargava, Chairman, Maruti Suzuki India Limited, “For unknown reasons, customers are putting off their purchases during the election, which has hit retail demand. I do not expect demand to pick up in the first quarter,”.