New Delhi: The auto industry, witnessing a massive fall in sales, showed a mild revival in passenger vehicle sale last month, a report by industry body Society of Indian Automobile Manufacturers (SIAM) has revealed. Experts, however, attributed the said rise to the recently-concluded restive season, adding that it would not be enough to drag the sector out of its current crisis.
According to the report, the Indian auto sector’s total sales were down 12.76% to 21,76,136 units in October, down from 24,94,345 units sold in the corresponding month last year. The report, however, showed a marginal increase in domestic passenger sales-up 0.28% to 2,85,027 units in October from 2,84,223 units in the year-ago period.
Domestic car sales and motorcycle sales, too, were both down. While the former slumped 6.34% from 1,85,400 to 1,73,649 from October 2018, the latter was down 16% to 11,16,970 from 13,27,758 units from the said time last year. In fact, the overall fall in sales in the two-wheeler category declined 14.43%, slumping from 20,o0,000 units last October to 17,57,264 units twelve months later. Sales of commercial vehicles, meanwhile, went down 23.31% to 66,773 units in the month of October.
The data also showed that two-wheeler exports increased 8.03% but production declined 26.57%.
The slowdown in the auto sector is a part of the ongoing economic slowdown across the country, due to which recently, its Gross Domestic Product (GDP) fell to 5% from 8%. Moody’s, too, recently slashed India’s projected GDP growth rate in fiscal year 2019-20 to 5.8% from 6.2%.