Q1 auto-sales record strongest de-growth since 2008-09
The April-June’19 quarter saw vehicle sales registering a negative trend and recording the sharpest fall (12% year-on-year) since financial year 2008-09 when sales for two wheelers slipped by 17%. This has been attributed to reasons like production cuts and closure of plants by major automakers to manage higher inventory costs due to weak demand.
Passenger vehicle (PV) also dipped 18% year-on-year in volume terms during the quarter, as prices remained high due to a hike in insurance premium, safety norms and costlier finance. This has been the highest drop since the 23% y-o-y fall seen in the third quarter of 2000-01. According to the President of Society of Indian Automobile Manufacturers, Mr. Rajan Wadhera, this trend could lead to unemployment & and curtail future investments.