Passenger vehicle sales slip 31% in July, sector facing massive job losses: SIAM

Domestic passenger vehicle sales fell 30.9% in July, marking a ninth straight decline in monthly sales amid a deepening crisis in the automobile sector that has triggered massive job losses, the Society of Indian Automobile Manufacturers (SIAM) said on Tuesday.

In July 2019, total passenger car sales were 200,790 as compared to 290,930 in July 2018. Two-wheeler sales were down by 16.82% to 1,511,692 as compared to 1,817,406 in the same month of last year.

Commercial vehicle (including medium, heavy and light commercial vehicle) sales plunged by 25.71% with 56,866 vehicles being sold in July 2019 as compared to 76,545 in July 2018.

Three-wheeler sales were down by 7.66% with 55,719 units being sold in July this year as compared to 60,341 sold in the same month last year.

Total vehicles (including two and three-wheelers) sales were 1,825,148 as compared to 2,245,223 units sold in July last year.

The auto industry has witnessed 2.15 lakh job losses due to the slowdown. Nearly 300 dealership outlets have vanished, resulting in two lakh people losing jobs. Another 15,000 job losses have been reported by original equipment manufacturers (OEMs), SIAM said.

Besides, 10 lakh jobs are under threat in vendors or component manufacturing segment of the auto sector due to tight liquidity conditions and poor consumer sentiment, it added.