SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 13 Mar, 2020  

Car.9.Thmb.jpg Slowdown: Feb auto sales decline by over 19%

Auto industry
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
SME Times News Bureau | 13 Mar, 2020
The domestic automobile sales continued to decline in February with the overall sectoral off-take plunging 19.08 per cent on a year-on-year basis, data showed on Friday.

As per the data furnished by the Society of Indian Automobile Manufacturers (SIAM), the sector's total sales declined to 1,646,332 units in February from 2,034,597 units sold during the corresponding month of the previous year.

In January, the overall sectoral off-take had declined by 13.83 per cent to 17,39,975 units from 20,19,253 units in January 2019.

Sales of all segments including passenger vehicles, commercial vehicles, three wheelers and two wheelers showed de-growth during the month under review.

Segment wise, the domestic passenger vehicle sales slipped by 7.61 per cent to 2,51,516 units in February 2020 from 2,72,243 units sold during the corresponding period last year.

"Wholesale dispatches decline by 7.6 per cent as compared to sub 2 per cent decline in retail volume during February 2020, indicating continued focus on inventory liquidation by OEMs or dealerships," said Ashish Modani, Vice President, Corporate Sector ratings, ICRA.

"BS4 inventory has come down below two week level, and there could be a sharp increase in discounts for certain slow moving models in current month to liquidate BS4 inventory ahead of nationwide BS6 rollout. Given lean inventory level at dealerships, some inventory restocking impact will be visible in wholesale dispatches during March 2020 and Q1 FY'2021."

The off-take of commercial vehicles took a major hit with sales declining 32.90 per cent to 58,670 units, compared to 87,436 units sold in February 2019.

Medium and Heavy Commercial vehicles were a major victim of the ongoing slowdown as sales fell 40.44 per cent to 20,425 units.

Similarly, sales of the three-wheeler segment, which includes both goods and passenger carriers, declined by 31.02 per cent to 41,300 units during the month under review.

In terms of two-wheelers, which include scooters, motorcycles and mopeds, the sales edged lower by 19.82 per cent to 1,294,791 units.

"The sharp decline in yoy production of both CVs and PVs at 40.1 per cent and 9.4 per cent respectively in February 2020 reflects not only the expectations of weak demand in the near term but also the challenges in the supply chain for BS-VI vehicles brought about by the outbreak of the Coronavirus," said Suman Chowdhury, President, Acuité Ratings & Research.

"If the supply chain disruption gets extended, there can be a significant impact on domestic sales of BS-VI vehicles in the first quarter of FY21."

Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter