NEW DELHI: The first month of the calendar year 2020 carried the same downturn faced by the Indian automotive industry for more than one-and-half- year.
According to the latest data released by SIAM, overall domestic auto sales in January fell 13.83 per cent to 1,739,975 units as against 2,019,253 units sold in the same month last year.
Going forward, the industrial body expects sales to improve only in October this year, the month of festive season, as upcoming emission norms from April 2020 is expected to make vehicles more expensive and less desirable.
The Society of Indian Automobile Manufacturers (SIAM) further said that price hike on account of BS-VI transition will be a major deterrent for sales during the first three months of FY2021. “By the second-half of the next financial year, we will see better numbers. That is when the next festival season begins,” said Rajesh Menon, director general, SIAM.
Meanwhile, domestic passenger vehicle sales declined 6.2 per cent year-on-year to 262,714 units in January 2020, while total two-wheeler sales fell 16.06 per cent to 13,41,005 units. Further, sales of commercial vehicles were down 14.04 per cent to 75,289 units last month.
Not only SIAM, even auto companies have raised concern over muted market sentiments that according to them will continue. That is why they sought relief from the government in the form of GST rate cut. However, the Union Budget 2020 did not have any booster for the industry.
About the Coronavirus outbreak in China, which has impacted the global automotive supply-chain, SIAM said a clear picture on its impact on India will emerge only in the next few days after factories in the country start re-opening.
“What is clear is that there are apprehensions. To what extent the problem will be, we will come to know in the next few days,” Menon said.