The passenger automotive scenario is in shambles, as sales continue to plummet and have managed to achieve a new low; one not seen in India for 19 years.
Segment-wise, passenger cars have seen a year-on-year dip of 35.95%, whereas utility vehicles and vans have seen a slip of 15.22% and 45.68% each.
While manufacturers are biting the bullet by trying to sell cars at large discounts, this has failed to provide the necessary impetus, forcing the Society of Indian Automobile Manufacturers (SIAM) to plead for governmental intervention.
The reduction in sales has not only affected manufacturers in particular but the OEM industry at large. While over 3 lakh jobs have been lost, many small manufacturers have been forced to shut shop. To amend the situation, the government is planning to introduce revival policies, which include overall GST reduction, a scrappage policy, and BS-6 prebuying.
How the government manages to resurrect the automobile industry, which is an important part of the Indian economy, is for time to tell.
