In the association statement, Rajan Wadhera, president, SIAM and president - automotive sector of Mahindra & Mahindra, said, “The sales report coming out from various companies for the month of August 2019 has been very dismal with over 30 percent erosion of sales for passenger vehicles. The commercial vehicle and two-wheeler sales are also significantly negative indicating that the market has still not responded to the various measures initiated by the finance minister in July.”
He further noted that the government has to consider reducing the goods and services tax (GST) rates from 28 to 18 percent which would significantly reduce the cost of vehicles and in turn create demand. However, Finance Minister Nirmala Sitharaman made no mention of any rate cuts in the auto sector during the 37th GST Council meeting held on September 20.
The continuing consumption slowdown prompted many auto shippers such as Ashok Leyland, Maruti, Tata Motors, Mahindra & Mahindra, and Honda Motorcycle, among others to suspend production at their units in the past several months.
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November - December 2019