Figures released by Society of Indian Automobile Manufacturers (SIAM) revealed that the automobile sales in February’20 declined by close to 20% vis-a-vis same period last year. The same had dropped by 13.8% in Jan’2020 (y-o-y).
Total vehicle sales Feb’19 – 20, 34, 597 units
Total vehicle sales Feb’20 – 16, 46, 332 units (decline of 19.08%)
The current slowdown conditions and the impending transition to BS-VI norms is stated as the primary factors behind this drop, as per SIAM. Drop in sales is observed across categories. Domestic passenger vehicle sales, which had declined y-o-y 6.2% in Jan’20, declined by 7.61% in Feb’20. Car sales in Feb’20 also declined by 8.77%. Two-wheeler sales saw a sharp drop of 19.82% in Feb’20 compared to the same period year back. Sale of commercial vehicles also saw a decline of 32.9% y-o-y in Feb’20.
The Indian automotive sector has been struggling for a while now with a depressed domestic demand. The uncertainty around the shift to BS-VI norms added further complexity to the situation. Now, with supply line disruptions expected from China and the global economic effect of the coronavirus pandemic, hopes of any immediate recovery look grim for the sector.