Car Sales Down By 31%, Hits 20-year Low; 2.30 Lakh Jobs Lost, 286 Dealers Shut Down
The automobile sector is in a major downward spiral and the string of unfortunate events is not looking to end soon. The scenario of jobs and manufacturing in the automobile sector is at its worst after two decades, as revealed by the Society of Indian Automobile Manufacturers (SIAM), which is the apex national body representing all major vehicle and vehicular engine manufacturers.
The car sales have seen a sharp decline, and about 2.30 lakhs people have faced the axe and had to let go of their jobs. 286 dealership outlets have had to be shut down all due this terrible time that the industry is facing.
Read on to know the worsening conditions of the automobile industry, as reported by SIAM.
Car Sales Fall By 31%, Lowest In 20 Years; 2.30 Lakh Jobs Loss in Automobile Sector
The report by SIAM says that the sales of passenger vehicles to car dealers have fallen by 30.9% to 200,790 in July, which is the ninth month straight for such conditions. Whereas, the sale of commercial vehicles has fallen by 25.7% to 56,866 units.
Motorcycles and scooters sale has fallen by 16.8% to 1.51 million units and passenger car sales fell by 36% to 122,956 units. Moreover, the production of domestic passenger vehicles has fallen by a good 17%.
SIAM’s report has also discussed the loss of jobs which has culminated due to the fall in the sales of passenger vehicles. SIAM’s report also says that 2.30 lakh jobs have been lost as a result of the dire straits of the industry.
Vishnu Mathur, the director general of SIAM, has talked about the pitiful state of the auto industry, saying, “The data shows urgent need for a revival package from the government. The industry is doing everything possible to increase sales but it needs government support to prevent the crisis from worsening.”
286 Dealership Outlets Shut Down
As the production is not happening as per expectations, it is bound to affect the overall sales, and has resulted in the shutting down of as much as 286 dealership outlets.
What’s more, all these dealership outlets have had to shut down all in the matter of 18 months only.
Add to all this the hike of prices that will come with the upgradation of products for the Bharat Stage-VI emission norms, and the situation will be worse.