India (SIAM): August new car sales, serious situation: GST cut demand

India (SIAM): August new car sales, serious situation: GST cut demand

Bengaluru

September 24, 2019

Indian Automobile Manufacturers Association (SIAM):

On September 9th, we announced the automobile statistics for August.

Passenger car sales: [including UV and van]

Total sales volume decreased by 31.6% year-on-year, to 196,524 units, the largest decline since 1997.

General passenger cars: 115,957 units, down 41.1%, 71,478 units, down 2.2%,
Vans: Demand stagnated in each segment at 9,089 units, down 47.4%.

The number of passenger cars sold has been decreasing for the 10th consecutive month since November 2018.There are several negative factors such as the easing of lending, the mandatory period of 3 years for the liability insurance, and rising fuel prices. May overlap at the same time.

By manufacturer: Monthly sales volume (see Table 1)

1st place: Maruti Suzuki, 93,173 units, down 36.1% year-on-year
2nd: Hyundai Motor decreased 16.6% to 38,205 units
Of the 17 major manufacturers, 15 (excluding the recently entered UK MG, South Korea and Kia) declined by double digits.

Total vehicle sales in August: (See Table 3)

Total vehicle sales in August fell by 23.5% to 18.21,490 units.

Commercial vehicles: 51,897 units, down 38.7% year-on-year
Tricycle: 58,818 units, down 6.9% year-on-year

In order to encourage consumers to purchase, SIAM requires the Goods and Services Tax (GST) applicable to automobiles to be reduced from the current 28% to 18%.

-JETRO

https://www.jetro.go.jp/biznews/2019/09/33a340b820d165c0.html