Car sales drop for 9th month, temporary workers face the heat

August 12, 2013

Car_sales_drop

New Delhi, Aug 12: With car sales in India falling for a record ninth month in a row in July posting 7.4 per cent decline and that of heavy and medium commercial vehicles dipping for 17th month in succession, industry body SIAM today said auto sector has started retrenching temporary workers.

According to the latest data released by the Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales declined to 1,31,163 units in July this year from 1,41,646 units in the same month of 2012.

While total sales of commercial vehicles dropped by 14.93 per cent to 55,301 units from 65,008 units in the year-ago period, heavy and medium commercial vehicles (M&HCV) sales were down 19.88 per cent at 18,611 units.

"It is a very serious situation for the industry. The original equipment manufacturers (OEMs) have started adjusting temporary and casual workforce," SIAM Director General Vishnu Mathur told reporters here.

While he did not share the exact number of temporary workers affected by the downsizing, Mathur said: "In the manufacturing sector, not restricted to auto sector alone, companies by and large tend to keep more temporary and casual workers."

According to SIAM estimates, the OEMs employ a total of about two lakh workers, another five lakh by component makers while four lakh are employed at dealer and service centres.

While Maruti Suzuki India (MSI) has already asked some of its temporary workers at the diesel engine plant at Manesar to go on indefinite leave, Toyota Kirloskar Motor also confirmed that it is "currently not renewing contracts of the temporary employees", without specifying details.

Mathur further said the demand slump has affected across the segments. "For the total passenger vehicles, including cars, July was the 8th straight month of decline. Similarly, for motorcycles and grand total of all categories, it was the 6th straight month of decline."

Total sales of vehicles across categories registered a decline of 2.08 per cent to 14,15,102 units in July 2013 as against 14,45,112 units in the same month of 2012.

He said in the wake of the continuous decline in automobile sales, SIAM has approached the government seeking stimulus package, including reduction in excise duty, fleet modernisation and put an end to ban on new government vehicle purchase that has been on since May last year.

The overall economic factors, high interest rates, fuel prices and low sentiments continue to hurt demand, although new model launches such as Honda Amaze, Ford EcoSport have been able to bring "some excitement in the market", he added.

In July, market leader MSI posted 10.88 per cent increase in its domestic car sales at 63,040 units, while that of rival Hyundai Motor India were down by 5.67 per cent at 25,939 units. Tata Motors' car sales were down by 59.59 per cent at 8,546 units during the month.

Mahindra & Mahindra's utility vehicle (UV) sales were down 30.10 per cent in the month at 14,503 units.

SIAM said the UV segment, which was doing well in earlier months, has been hurt by the hike in excise duty to 30 per cent. In July, the segment saw a decline of 17.53 per cent at 37,010 units.

"There is a correlation in the drop of UV sales and excise hike. It was growing at high double digits till March, when it grew by 34 per cent, but then in April it came down to a growth of just 3.99 per cent. Since then the segment has been struggling to grow," Mathur said.

According to the SIAM data, domestic motorcycle sales declined by 1.52 per cent to 8,09,312 units in the last month, from 8,21,821 units in the same month previous year.

Market leader Hero MotoCorp (HMC) posted a decline of 3.79 per cent at 4,20,397 units.

Bajaj Auto also saw a decline of 23.61 per cent at 1,53,173 units, while Honda Motorcycle and Scooter India (HMSI) saw its bike sales grow by 38.27 per cent to 1,40,611 units in July this year.

The scooters segment saw a growth of 9.80 per cent to 2,71,438 units during the month, SIAM said.

HMSI's scooter sales grew by 7.69 per cent at 1,35,584 units, while that of HMC jumped by 57.6 per cent at 56,798 units. TVS Motor Co saw its scooter sales decline by 13.94 per cent at 35,010 units.

Total two-wheeler sales in July 2013 declined by 0.06 per cent to 11,31,992 units from 11,32,696 units in the same period of previous year, SIAM said.

According to SIAM, three-wheeler sales in the country declined by 6.14 per cent at 41,570 units.

When asked if automobile sales could pick up in the festive season, Mathur said: "There is hope. We have had a good monsoon this year as we have said earlier. Companies are preparing for the festive season with new launches. We hope that there will be someting positive in the festive season."

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Agencies
June 6,2020

United Nations, Jun 6: The coronavirus disease has not "exploded" in India, but the risk of that happening remains as the country moves towards unlocking its nationwide lockdown that was imposed in March to contain the Covid-19, according to a top WHO expert.

WHO Health Emergencies Programme Executive Director Michael Ryan on Friday said the doubling time of the coronavirus cases in India is about three weeks at this stage.

“So the direction of travel of the epidemic is not exponential but it is still growing,” he said, adding that the impact of the pandemic is different in different parts of India and varies between urban and rural settings.

“In South Asia, not just in India but in Bangladesh and...in Pakistan, other countries in South Asia, with large dense populations, the disease has not exploded. But there is always the risk of that happening,” Ryan said in Geneva.

He stressed that as the disease generates and creates a foothold in communities, it can accelerate at any time as has been seen in a number of settings.

Ryan noted that measures taken in India such as the nationwide lockdown have had an impact in slowing transmission but the risk of an increase in cases looms as the country opens up.

“The measures taken in India certainly had an impact in dampening transmission and as India, as in other large countries, open up and as people begin to move again, there's always a risk of the disease bouncing back up,” he said.

He added that there are specific issues in India regarding the large amount of migration, the dense populations in the urban environment and the fact that many workers have no choice but to go to work every day.

India went past Italy to become the sixth worst-hit nation by the COVID-19 pandemic.

India saw a record single-day jump of 9,887 coronavirus cases and 294 deaths on Saturday, pushing the nationwide infection tally to 2,36,657 and the death toll to 6,642, according to the health ministry.

The lockdown in India, was first clamped on March 25 and spanned for 21 days, while the second phase of the curbs began on April 15 and stretched for 19 days till May 3. The third phase of the lockdown was in effect for 14 days and ended on May 17. The fourth phase ended on May 31.

The country had registered 512 coronavirus infection cases till March 24.

The nation-wide lockdown in containment zones will continue till June 30 in India but extensive relaxations in a phased manner from June 8 are listed in the Union home ministry's fresh guidelines on tackling the Covid-19 pandemic issued last week.

WHO Chief Scientist Soumya Swaminathan said the over 200,000 current coronavirus cases in India, a country of over 1.3 billion people, "look big but for a country of this size, it's still modest.”

She stressed that it is important for India to keep track of the growth rate, the doubling time of the virus and to make sure that that number doesn't get worse.

She said that India is a “heterogeneous and huge country” with very densely populated cities and much lower density in some rural areas and varying health systems in different states and these offer challenges to the control of Covid-19.

Swaminathan added that as the lockdown and restrictions are lifted, it must be ensured that all precautions are taken by people.

“We've been making this point repeatedly that really if you want behaviour change at a large level, people need to understand the rationale for asking them to do certain things (such as) wearing masks,” she said.

In many urban areas in India, it's impossible to maintain physical distancing, she said adding that it then becomes very important for people to wear appropriate face coverings when they are out, in office settings, in public transport and educational institutions.

“As some states are thinking about opening, every institution, organisation, industry and sector needs to think about what are the measures that need to be put in place before you can allow a functioning and it may never be back to normal.”

She said that in many professions working from home can be encouraged but in several jobs, people have to go to work and in such cases measures must be put in place that allow people to protect themselves and others.

“I think communication and behaviour change is a very large part of this whole exercise,” she added.

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Agencies
February 6,2020

New Delhi, Feb 6: Unemployment rate in the country as per a new survey was 6.1 per cent in 2017-18, the government informed Rajya Sabha on Wednesday.

Minister of State for Labour Santosh Gangwar said the government is conducting a new Periodic Labour Force Survey (PLFS) with new parameters and bigger sample size, and its results cannot be compared with previous surveys in this regard.

"As per the new Periodic Labour Force Survey being conducted by the government, the labour force participation is 36.9 per cent and the rate of unemployment for 2017-18 is 6.1 per cent," he said.

Replying to supplementaries during the Question Hour, the minister said the report of this survey is very different than the surveys conducted in previous years.

This survey is not comparable to previous surveys, he said, adding it was an attempt to provide authentic data with the new survey conducted through the Ministry of Statistics.

"We are focusing on infrastructure development and ease of doing business and India's position in the world has improved. India has improved its position to 63rd rank now in 2019 against 196 in previous years," he said.

"Our government is very conscious of creating employment opportunities and is running such programme which generates employment.

"The way our government is functioning, employment opportunities are being created and the youths are getting jobs also," the minister said.

Gangwar said the government has stopped the previous survey as the sample size was low and an attempt is being made to improve the data by adding various parameters and provide more authentic data.

The minister said it will take time for collection of data as households have to be visited on the ground for authentic data collection in rural areas also.

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News Network
April 15,2020

New Delhi, Apr 15: The Union Health Ministry has identified 170 districts as COVID-19 hotspots and 207 districts as potential hotspots, officials said on Wednesday, reiterating that there has been no community transmission of the disease in the country so far.

Addressing the daily briefing to provide updates on coronavirus situation in the country, Joint Secretary in the Ministry of Health Lav Agarwal said that states have been asked to classify districts which have reported a higher number of cases as hotspots, the districts where cases have been reported as non-hotspots, and green zones where no cases have been reported.

"Hotspots are those districts which are reporting more number of cases or where the rate of growth of COVID-19 cases is high," Agarwal said, adding a detailed direction has been issued to states stating consolidated efforts are required to utilise this period of lockdown to curb the spread of the virus.

"Cabinet secretary held a video conference today with all chief secretaries, DGPs, health secretaries, collectors, SPs, municipal commissioners and CMOs where hotspots were discussed and orientation on field level implementation of containment strategy was given.

"They were told about large outbreak containment strategies, cluster containment strategies. Delineation of buffer and containment zone, parameter mapping, defining of entry and exit points were also discussed in detail," he said.

The joint secretary said movement of people will not be allowed in containment zones except for those related with essential services and special teams will search for new cases and samples will be collected and tested as per sampling criteria.

The officials said that health facilities in buffer zone outside the containment zone will be oriented and people facing SARI and influenza-like symptoms will be tested there.

"Special teams have been formed which will work in containment zone and do contact tracing and house-to-house surveys. Cases of fever, cough and breathlessness will be identified in the survey and requisite action will be taken as per protocol," Agarwal said, adding that there has been no community transmissions so far but some local outbreaks.

The total number of COVID-19 cases in India has risen to 11,439 with 1,076 fresh cases reported in the last 24 hours while the death toll stands at 377, the ministry official said.

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