Once again India’s monthly passenger vehicle and car sales shrunk further during the month of August.
As per the latest report shared by Society of Indian Automobile Manufacturers (SIAM), the passenger vehicle sales domestic market also declined by around 32 percent to 1,96,524 units during last month as against 2,87,198 units in the corresponding month last year.
Since 1997-98, this is the worst-ever fall for both the categories as per SIAM.
Market leader Maruti Suzuki India had reported a 36 percent YoY decline in sales during August to 93,173 units (1,45,895 units).
As witnessed, Hyundai Motor India Ltd (HMIL) recorded 16.58 percent decrease at 38,205 units, while Mahindra & Mahindra posted a fall of 31.58 percent at 13,504 units during the month.
Honda Cars India and Tata Motors, in particular, reported the most dismal numbers, selling less than half of the units they sold last year in August.
Apart from the cars, Two-wheeler makers including Hero MotoCorp, Honda Motorcycle, and Scooters India, Bajaj Auto and TVS Motor also had reported a decline in sales during August.
In this segment, both scooter and motorcycle sales declined by a little more than 22 percent Year on Year. While the scooter sales during the month were recorded at 5,20,898 units (as against 6,69,416 units), the motorcycle sales fell to 9,37,486 units (against 12,07,005 units).
Reduction in GST can only save from further slowdown. Hence, the sector required an immediate decision from the government on GST reduction (from 28 percent to 18 percent) which may help boost sales during the festive season.
Recently, at the SIAM and ACMA conventions, the industry demanded a quick intervention from the government on reducing GST, at least for some time, to gain back the sentiments in consumers.
However, still, no assurance on cutting down the GST rates on automobile sector has been given in the last council meetings that held two consecutive days last week.
The industry has to wait for the GST Council meet on September 20 for a holistic picture and if they get any relief from the decisions that are made on the day.