Commercial vehicles and passenger vehicles recorded a dip of 14.98% and 10.83% respectively this year in November compared to last year's figures.
The sales of domestic vehicles declined across all categories in the country by 12.05% in November compared to last year's figures. 17.92 lakh units of domestic vehicles were sold in November compared to 20.38 lakh units sold last year, data released by Society of Indian Automobile Manufacturers (SIAM) revealed on Tuesday.
Two-wheelers recorded a decline of 14.27% in sales, 14.1 lakh units were sold in November this year compared to 16.45 lakh units last year. The Society of Indian Automobile Manufacturers (SIAM) Director General Rajesh Menon cited poor consumption in rural areas as the reason for the dip in sales growth of two-wheelers.
Commercial vehicles and passenger vehicles recorded a dip of 14.98% and 10.83% respectively this year in November compared to last year's figures.
However, there has been a spike of 4.45% in the sale of three-wheelers. 55,778 units of three-wheelers were sold this year compared to 53,401 units sold in November 2018.
Speaking on the dip in sales of commercial and passenger vehicles, SIAM director said, "If the income tax reliefs are announced in the Union Budget for 2020-21, it will be of great help. We have also called for a reduction in Goods and Services Tax (GST) to help manufacturers."
The automobile sector of the country has been badly hit due to the economic slowdown faced by the country this year.
On Thursday, BJP Lok Sabha MP Virendra Singh denied any situation of an economic slowdown and termed it as an attempt to defame the government. While speaking in the Lower House today, he asked that if there is a decline in automobile sales, then why are there traffic jams on the roads?
"An atmosphere is being created that there is an economic slowdown. To defame the nation and government people are saying that the automobile sector has slowed down. If there is a decline in automobile sales then why are there traffic jams on the roads? There are 20 vehicles in one home. You never decide what should be the relation between consumer and production," Virendra Singh said in Lok Sabha.
In September, Sitharaman had reasoned that the "millennial mindset" of using app-based cab services was the reason why people were not buying cars.
Being in the automobile capital, Chennai, the minister when peppered with questions on the slowdown in the sector, said to be the worst in nearly two decades, said, "It is true that the automobile sector in India had a good time till two years ago, there was definitely a good upward trajectory for automobile sector. The automobile sector is affected by a range of issues such as rollout of Bharat Stage VI emission standard, higher registration fee, the mindset of millennials who prefer to use ride-hailing services such as Ola and Uber over committing to an EMI for purchasing a vehicle, besides the use of public transport such as metro."
In August, domestic passenger vehicle sales fell for the 10th consecutive month, registering a 31.57% decline.
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