The automobile industry is not making any significant improvement in the country. The figures for July’s sales numbers in India are quite scary. Now the automobile industry has all the expectations from the upcoming festive season for improving their sales figure. The country’s largest automobile company Maruti Suzuki had domestic sales of 98,210 units in July. In the same month last year, the number was 1,54,150, i.e a huge drop of 36.3% has been observed.
Sales of compact class vehicles of Maruti Suzuki, including Swift, Celerio, Ignis, Baleno and other compact vehicles, also dropped 22.70 percent to 57,512 units from last year’s 74,373 units. Utility vehicles, including Vitara Brezza, S Cross and Ertiga, dropped 38.10 percent to 15,178 units. Similarly, the rival company, Hyundai Motor India Ltd (HMIL), saw domestic sales drop by 10 percent to 39,010 vehicles in July.
When all the car companies were investing heavily on making diesel engines, the Supreme Court of India decided to ban the sale of diesel vehicles of more than 10 years age in Delhi NCR. Since then the auto sector is facing huge problems. As a result, not only the growth rate of the automobile industry has fallen, but it has come to the close of the biggest recession of the decade. There is a similar scene in the two-wheeler segment. Only Suzuki motorcycles registered an increase of 17%. Sales of TVs decreased by 15.72%. Royal Enfield also registered a 22% decrease in domestic sales.
Auto sector experts believe that the announcement of implementing the India-six standard in the year 2020 directly from Bharat Stage-Four surprised the companies due to emission restrictions along with the restriction in NCR on older diesel vehicles. Another reason for the fall of figures in the sales figure of the automobile industry is Demonetization and GST. These implementations by the government suffered a setback when auto sector companies were busy formulating their future strategy amid policy uncertainty. Meanwhile, the pace of sales of cars started decreasing in the middle of the year 2017. If excluding the initial two-three months of 2018, sales of the auto industry have never been encouraging during this period. If these sales figure will continue to fall, jobs in automobile sector can be cut down.