AutoBeta(AutoBeta.net)09/13 Report--

The Indian car market is almost a cake in the eyes of global automakers, thanks to the surging middle class in the most populous country. However, according to data released by the Association of Indian Automobile Manufacturers, Indian car market sales have declined in October. Its passenger car sales plunged 41% in August from a year earlier, selling only 115000 vehicles.

Sales of Maruti Suzuki, India's largest carmaker, fell 36 per cent in August from a year earlier to just 93000 vehicles, according to the data. Hyundai sales fell 16.6% year-on-year, Honda sales fell 51% year-on-year, Toyota sales fell 24.1% year-on-year, while local Tata car sales plunged 58%, causing fear in the auto industry.

At present, most of India's carmakers are facing huge inventory pressure, it is undoubtedly unwise to continue production, and some carmakers, such as Toyota and Hyundai, have suspended production.

Some analysts pointed out that although India has a large population and provides a strong market, the infrastructure is poor, and in rural and suburban areas, the main means of transport are still motorcycles and electric cars. As the Indian economy slows further and the consumer market is in the doldrums, the "cold winter" of the car market will continue.

In addition, BBC pointed out that the Indian government's vigorous promotion of electric vehicles is also one of the important reasons for the downturn in the fuel vehicle market.

It is understood that in July this year, the Indian Ministry of Finance came to encourage the development of electric vehicles, announcing that the goods and services tax on electric vehicles and charging equipment would be reduced from 12% 18% to 5%, but the current share of electric vehicles in India is less than 0.1%.

It is understood that the automobile industry accounts for half of India's manufacturing output, directly or indirectly employs 35 million workers, due to the downturn in the car market, Indian car companies are at risk of layoffs. According to statistics, including the automobile manufacturing industry, parts suppliers, and other automotive industries, layoffs have reached 330000.

Some institutional analysts pointed out that the "cold winter" of the Indian market is expected to recover by 2021, and what auto companies can do now is to make positive changes and wait for recovery.

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