Auto sales in India sees sharpest fall 19 years in July; 15,000 workers lose jobs
New Delhi: Automobile sales in India witnessed its sharpest decline in nearly 19 years in July, dropping 18.71 per cent, rendering almost 15,000 workers jobless over the past two-three months as the sector reels under a prolonged slump, auto industry body SIAM reported on Tuesday.
As per data released by the Society of Indian Automobile Manufacturers (SIAM), vehicle sales across categories, including passenger vehicles (PVs) and two-wheelers, stood at 18,25,148 units last month as against 22,45,223 units in July 2018.
The previous biggest decline across overall domestic automobile sales was recorded in December 2000 when it fell 21.81 per cent.
Similarly, domestic PV sales also saw the biggest fall in nearly 19 years, slumping by 30.98 per cent to 2,00,790 units as compared with 2,90,931 units in the same period a year ago. Previously, the worst decline was registered in December 2000, when wholesales had fallen 35.22 per cent.
The fall in PV sales in July was also the ninth consecutive month of decline.
SIAM said passenger car sales in July were also worst since December 2000 when the segment had declined by 39.86 per cent. Last month, domestic car sales were down 35.95 per cent at 1,22,956 units as against 1,91,979 units in July 2018.
Besides, total two-wheeler sales last month declined 16.82 per cent to 15,11,692 units compared to 18,17,406 units in the year-ago month. Commercial vehicle sales were down 25.71 per cent to 56,866 units in July as compared with 76,545 units in July 2018.
"The data shows how urgent the need is for revival package from the government. There is urgent need for some kind do action. The industry is doing all it can to promote sales. I think this is the time when the industry really needs the support of government coming out with a revival package," SIAM Director General Vishnu Mathur told reporters here.
The revival package is necessary to arrest fall in sales and to bring back the industry on growth path, he added.
Mathur said that almost 15,000 jobs, mostly temporary and casual workers, have already been lost in the automobile manufacturing companies over the last two to three months. Besides, over a million jobs are on the line in the automotive components segment, he added.
With plunging sales, nearly 300 dealerships have been forced to close down leading to loss of around two lakh jobs, Mathur said. Underlining the current grave situation of the auto industry, he said that in the previous downturns the sector witnessed in 2008-09 and 2013-14, at least some of the segments of the industry were growing.
"However, this time around all segments of the industry are witnessing decline in sales," he said.
Seeking urgent government help, Mathur said, "We are hoping that the government would soon come out with a revival package... However, it is still not clear what all elements would be included in it."
The auto industry has sought reduction in GST rate, introduction of vehicle scrappage policy, revival of NBFC sector as sales are mostly dependent on availability of finance and delay in implementation of the proposed increase in vehicle registration fees, Mathur said when asked about the demands put forth by the industry to the government.
He said there was a consensus among the industry players for reduction in GST rate cut as it would help in bringing the cost of buying vehicles down.
"We are saying that reduction in GST rate, even for a temporary time, would help in reviving the sales... The more the industry goes down, more difficult it would become for it to come up," Mathur said.
If the industry goes down, the GDP will go down as automobile industry accounts for half of the manufacturing GDP and employs around 3.7 crore people directly and indirectly, he added.
In PV segment, market leader Maruti Suzuki India posted 36.71 per cent decline in its July sales at 96,478 units. Hyundai Motor India Ltd (HMIL) also witnessed 10.28 per cent decrease at 39,010 units, while Mahindra & Mahindra posted a fall of 14.74 per cent at 16,830 units in during the month.
In the two-wheeler category, Hero MotoCorp registered a 22.9 per cent drop in sales at 5,11,374 units, while rival Honda Motorcycle and Scooter India (HMSI) saw sales decline by 10.53 per cent to 4,55,036 units.
Similarly, Chennai-based TVS Motor Co saw it sales slump by 15.72 per cent at 2,08,489 units in July.
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Man chased, brutally stabbed inside public toilet in northwest Delhi; one arrested; juvenile held
New Delhi (PTI): An alleged road rage incident took a fatal turn when a 27-year-old factory worker was chased down by assailants and stabbed multiple times inside a public toilet in northwest Delhi's Ashok Vihar area, police said on Thursday.
According to police, the incident took place on Wednesday night, when witnesses saw the victim, Santosh Kumar, running into a public toilet in a desperate bid to save his life, with his attackers hot on his heels.
"A PCR call was received at 6:23 pm on April 8 regarding a man being stabbed inside the compound of a Sulabh Sauchalaya located at the fish market in Wazirpur Industrial Area," a senior police officer said.
A police team rushed to the spot and found the victim lying in a pool of blood inside the toilet premises. The victim, originally from Nepal, was residing in Macchi Market area, the official said.
Preliminary inquiry revealed that the incident stemmed from an altercation between the victim and a motorcycle rider. The verbal spat soon escalated into a physical scuffle, during which the accused, along with an associate, allegedly attacked Santosh with a knife.
Police sources said in a desperate attempt to save himself, the injured victim ran towards the nearby public toilet and tried to latch the door from inside. Eyewitness accounts suggest he tried to take refuge inside the public toilet and shut the door to prevent his attackers from entering. However, he was chased down, overpowered, and stabbed multiple times.
Santosh collapsed on the spot, where he later succumbed to his injuries, police said.
A case under sections 103(1) (murder) and 3(5) (common intentions) was registered at Ashok Vihar police station and an investigation was taken up.
During the probe, police arrested one accused identified as Tanish (19), a resident of CSA Colony in Macchi Market area, and apprehended a juvenile allegedly involved in the incident.
Police said the motorcycle used by the accused, which they had abandoned while fleeing after the attack, was recovered near the crime scene.
Family members and acquaintances of the deceased expressed shock over the killing. Santosh's uncle, who reached the spot after being informed, recounted the scene.
"When I came here, I saw him lying on the floor, dead. I noticed that he had been stabbed twice. I am not aware of what exactly happened. He was just 27 years old and used to work in a steel company with me. I don't know how many people were involved in the attack. We are from Nepal, and I have been working here for 15 years. I think he was stabbed outside and later came inside the toilet to save himself. There was a bike outside which I think belonged to the attackers," he said.
Police said the motive behind the crime appears to be road rage -- a sudden and heated altercation on the road that spiralled into a violent assault resulting in the victim's death.
Efforts are underway to identify and apprehend any other persons involved in the attack. Police teams are analysing CCTV footage from the surrounding area and examining local witnesses to piece together the sequence of events.
