Passenger vehicle sales fall for 9 consecutive months, drop 31% in July

Passenger vehicle sales fall for 9 consecutive months, drop 31% in July
Workers assemble a Tata Tigor car inside the Tata Motors car plant in Sanand, on the outskirts of Ahmedabad. REUTERS/Amit Dave/File Photo
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New Delhi: Declining for the ninth consecutive month, domestic passenger vehicle (PV) sales dropped 30.98 per cent to 2,00,790 units in July, from 2,90,931 units in the same period a year ago.

Domestic car sales were down 35.95 per cent at 1,22,956 units as against 1,91,979 units in July 2018, according to data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

Motorcycle sales last month declined 18.88 per cent to 9,33,996 units for the month as against 11,51,324 units in the year-ago period.

Total two-wheeler sales in July declined 16.82 per cent to 15,11,692 units compared to 18,17,406 units in the year-ago month.

Sales of commercial vehicles were down 25.71 per cent to 56,866 units in July as compared with 76,545 units in the year-ago period, SIAM said.

Vehicle sales across categories registered a decline of 18.71 per cent to 18,25,148 units from 22,45,223 units in July 2018, it added.

The fall in car sales comes at a time when demand for consumer goods is falling and what is seen as a major sign of an economic slowdown in India, amid a liquidity crunch in the country's shadow banking sector that has impacted the availability of credit in the market.

India's auto sector is cutting tens of thousands of jobs citing slumping sales of cars and motorcycles, with many companies forced to shut down factories for days and axe shifts.

The downturn - regarded by industry executives as the worst ever suffered by the Indian auto industry - is posing a big challenge for the government.

The domestic auto industry demanded tax cuts and easier access to finance for dealers and buyers at a meeting with Indian government officials last week to discuss the sector's woes, in an effort to revive sales that have slumped.

(With inputs from PTI and Reuters)

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