India Auto Sales Take Record Fall in 10th Straight Month of Declines
Sales of passenger vehicles including SUVs fell 32% according to data released by the Society of Indian Automobile Manufacturers.
(Bloomberg) -- Car sales in India suffered their biggest monthly drop on record, as the slump in the country’s auto sector shows no sign of letting up.
Deliveries slid 41% in August from a year earlier to 115,957 units, while sales of passenger vehicles including SUVs fell 32%, according to data released by the Society of Indian Automobile Manufacturers on Monday. Truck and bus sales dropped 39%, and two-wheeler sales -- a key indicator of demand in rural India -- fell 22% to 1.5 million units.
The automobile sector is a key part of Asia’s third-largest economy, employing millions of people directly or indirectly and contributing more than 7% to the nation’s gross domestic product, according to McKinsey & Co. Slowing income growth for farmers in rural India has contributed to a fall in sales.
Companies from Suzuki Motor Corp.’s local unit to Mahindra & Mahindra Ltd. have cut production and laid off workers to cope with the slowdown. Prime Minister Narendra Modi’s administration has lifted a ban on new vehicle purchases by state-run departments and offered other concessions. Transport Minister Nitin Gadkari last week said he’ll convey a demand for a lower levy on petrol and diesel vehicles to the finance minister.
To contact the reporter on this story: Anurag Kotoky in New Delhi at akotoky@bloomberg.net
To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Will Davies
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