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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News Network
June 15,2020

New Delhi, Jun 15: On Monday, petrol and diesel prices across the country were raised for the ninth consecutive day by 48 paise and 59 paise, respectively.

Petrol price per litre was raised to Rs 76.26 in New Delhi, Rs 83.17 in Mumbai, Rs 79.96 in Chennai, Rs 79.17 in Hyderabad, Rs 78.73 in Bengaluru and Rs 78.10 in Kolkata.

Diesel price per litre was hiked to Rs 74.62 in New Delhi, Rs 73.21 in Mumbai, Rs 72.69 in Chennai, Rs 72.93 in Hyderabad, Rs 70.95 in Bengaluru and Rs 70.33 in Kolkata.

Since 7 June, after ending their 82-day hiatus in daily revision, state-owned oil marketing companies have increased petrol price by Rs 5 per litre and diesel by Rs 5.23 per litre.

These prices are close to levels last seen in October-November 2018 when international oil prices had spiked close to $80 per barrel. In October 2018, petrol price in Mumbai had crossed Rs 90-mark and in Delhi, it was around Rs 83 per litre.

Comparatively, on Monday, Brent crude, the international benchmark for crude oil prices, fell 2.3 percent to $37.84 a barrel over concerns of subdued demand for fuel as new coronavirus infections were reported in China and the US.

The present spike in fuel prices in India could be attributed to the fact that central and state governments, along with oil marketing companies are looking to make up for their loss in revenues due to the lockdown.

Last month, the central government had increased the excise duty on per litre of petrol by Rs 10 and per litre of diesel by Rs 13. Several state governments have also hiked their VAT or cess on fuel in the last month. In fact, now around 70 percent of the retail price of fuel is just some form of tax.

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Agencies
June 28,2020

New Delhi, Jun 28: Home Minister Amit Shah on Sunday targeted former Congress President Rahul Gandhi, saying he was indulging in "shallow-minded" politics and making statements that make Pakistan and China happy when soldiers are fighting a spirited battle.

Shah said the government is ready for a discussion in Parliament about the situation from 1962 (when India-China war took place) and it is sad that a former president of a party making statements, which are being celebrated in Pakistan and China.

The Home Minister's comments came during an interview with ANI when he was asked about Rahul's "Surrender (Prime Minister Narendra) Modi" remarks while criticising the BJP-led government on India-China border row.

Rahul has been consistent in his criticism of the government on the handling of both Covid-19 situation and India-China border row, which escalated into a "violent face-off" earlier this month in which 20 Indian soldiers were killed.

"Let there be a robust debate in Parliament. Let us have one. Let us discuss from 1962. Nobody is scared of debate. But one should not make a statement that makes Pakistan and China happy when the soldiers are fighting a spirited battle and the government is taking strong steps," he said.

Asked whether India can handle the anti-India propaganda unleashed by Rahul's 'Surrender Modi' hashtag, he said the government is capable of handling it but it is a matter of introspection for the former Congress president and his party that their remarks are being used against the country.

Modi's remarks at an all-party meeting that no one has intruded into Indian territory triggered a controversy with a section arguing that it went against the previous statement of External Affairs Minister S Jaishankar.

Claiming that he could not advise Rahul as it is Congress' job to do so, he said the government has fought Covid-19 well but some people have a twisted way of seeing things. He said India fought well against Covid-19 and the statistics will speak for itself as it is much better compared to the world.

Shah said under Modi's leadership, India is going to win both the battles -- Covid-19 and India-China border row.

The Home Minister also refused to be drawn into a question on whether Chinese soldiers are holding on to Indian territory on the border at present, saying the government is doing enough to address border row with China.

"I don't want to do anything that goes against my primary aim of this interview (to highlight the steps taken to fight Covid-19 pandemic in Delhi) and create headlines that keep citizens further in fear," Shah said.

When pointed out that people are also in panic due to the border situation, he said the government has taken steps to address the situation and at an appropriate time he would make comments, if needed.

Asked about his tweets on Emergency, which was targeted by Congress asking whether there is democracy in the BJP, he countered it saying that BJP has presidents L K Advani followed by Rajnath Singh, Nitin Gadkari, Rajnath again, himself and now J P Nadda.

"After Indira-ji, was there any Congress President from outside Gandhi family? What democracy do they talk about? I did not do any politics during Covid-19. You look at my tweets of the past 10 years. Every June 25, I give a statement," he said.

"Emergency should be remembered by people as it attacked the roots of our democracy. No one should ever forget it. There should be awareness about it. It is not about a party but about the attack on the country's democracy," he said.

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News Network
March 26,2020

Jaipur, Mar 26: Two new COVID-19 positive cases were registered in Rajasthan taking the total number of coronavirus cases to 38 in the state.
The Union Health Ministry had on Wednesday reported 606 positive COVID-19 cases in India including 43 foreign nationals.

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