This Article is From Jul 14, 2020

Car Sales Drop 58% In June, Passenger Vehicle Sales Down 50%: Industry Body

The COVID-19-triggered lockdown of more than two months kept consumers from making big purchases.

Car Sales Drop 58% In June, Passenger Vehicle Sales Down 50%: Industry Body

Passenger vehicle production decreased 57.74% to 1,07,477 units, according to SIAM

Passenger vehicle sales in the country declined 49.59 per cent last month compared with the corresponding period a year ago, industry body Society of Indian Automobile Manufacturers (SIAM) said on Tuesday. That included a 57.98 per cent drop in passenger car sales in June. The latest data from SIAM highlights weakness in the country's automobile market, already struggling against poor demand even before the coronavirus outbreak, as more than two months of COVID-19-related lockdown kept consumers from making big purchases. While data on BMW, Mercedes, and Volvo Auto were not available, only quarterly numbers were available for Tata Motors, SIAM said.

Here are 10 things to know about SIAM's data on auto sales:

  1. Sales in the domestic market dropped to 1,05,617 passenger vehicles last month, from 2,09,522 in June 2019. The number includes sales of passenger cars, utility vehicles and vans.

  2. That included sales of 1,32,077 passenger cars in June, down 57.98 per cent compared to 55,497 units in the year-ago period.

  3. "Inordinate delays in clearance due to congestion at ports could eventually impact manufacturing of vehicles in India. The industry is piecing itself together as growth is limping back; any further disruption at this juncture is best avoided," said Rajan Wadhera, president, SIAM.

  4. Sales of two- and three-wheelers declined 39.83 per cent to 10,23,731 units, including passenger as well as goods carriers, scooters, mopeds and electric vehicles, data showed.

  5. However, there was significant improvement in the passenger vehicle and two-wheeler segments in June compared to previous months, trade body SIAM said.

  6. Commercial vehicle sales - excluding Daimler and Scania whose data were not available - tumbled 84.81 per cent to 31,636 units, SIAM said.

  7. Passenger vehicle production decreased 57.74 per cent to 1,07,477 units, including a 64.95 per cent fall to 57,785 passenger cars.

  8. Exports of passenger vehicles slumped 56.31 per cent, with a 58.15 per cent decline in case of passenger cars.

  9. In the quarter ended June 30, sales tanked 78.43 per cent to 1,53,734 passenger vehicles compared to the year-ago period. During this period, production crashed 83.95 per cent and exports 74.72 per cent.

  10. Earlier this month, Tata Motors reported a 81.92 per cent in decline to 23,845 domestic sales.