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
February 9,2020

New Delhi, Feb 9: Calling India a "long-standing friend", Sri Lankan Prime Minister Mahinda Rajapaksa on Saturday thanked Prime Minister Narendra Modi for visiting his country in the aftermath of last year's Easter Sunday terror attacks and outlined that New Delhi has always helped Colombo in its fight against terrorism.

In a joint press briefing with PM Modi, Mahinda Rajapaksa said he hopes that India will continue to help Sri Lanka fight terrorism.

Mahinda Rajapaksa expressed his gratitude to PM Modi for the neighbourhood first policy and the priority India gives to Sri Lanka.

"We had agreed that our cooperation is multifaceted and priority is given to a number of areas including security, economy, culture and social sectors. Part of our discussions centered on cooperation with regard to the security of the two countries. India has always assisted Sri Lanka to enhance our capacity, capabilities in intelligence and counter-terrorism. We look forward to getting continued support in this regard," he said.

"I thank the Prime Minister for visiting Sri Lanka in the aftermath of the Easter Sunday terror attacks that provided us with immense strength to come to terms with the tragedy. We also appreciate Prime Minister Modi's $400 million line of credit to enhance the economy of Sri Lanka and another $50 million line of credit for fighting terrorism," he added.

The Sri Lankan president urged PM Modi to consider further assistance to expand housing projectS all over Sri Lanka to benefit people from rural areas.

"The Prime Minister and I discussed how Sri Lanka and India can work together in the field of economy. India is among the world's fastest growing economies. I discussed with PM Modi how Sri Lanka could benefit from certain economic sectors where India is in a strong position," he said.

Concluding his statement, Mahinda Rajapaksa said, "India is our closest neighbour and a long-standing friend. The close historical links...provided a solid foundation to our ties."

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News Network
May 23,2020

New Delhi, May 23: Carrying a sack full of belongings and a backpack on shoulders daily wager Mohammed Sunny and his friend Mohammed Danish are determined to reach home for Eid in Bihar's Araria district, facing all odds stacked up against them.

Shahjehanpur native Adesh Singh with his wife and three little children, who left their residence in south Delhi three days ago, are still scrambling to reach home, haggling with taxi drivers, to take them to their home town charging a reasonable fare.

This was among the many scenes of migrants' life on Friday at Delhi-Uttar Pradesh border touching Ghazipur in east Delhi who are struggling to make their way to their native places amid a COVID-19-induced lockdown across the country.

"We left home three days ago near Chhatarpur, we have walked and rested by roadsides, people gave us food on the way, so we survived. Now, we just want to reach home, we can't survive in Delhi," Manju Singh, wife of Adesh Singh told PTI as she waited at the UP Gate to get a taxi to cross the border on way to her home.

Their three children Alok (12), Ankesh (8) and Rupali (9), all wearing simple masks, were seen squatting on the roadside beside their luggage as their wearied parents, using cloths to cover their nose and mouth, bargained with taxi drivers to take them home, without charging much above the regular fare, saying they "did not have much cash left".

Police personnel could be seen asking many migrants who were marching on foot towards the inter-state border, to turn back.

Many did, but not Sunny and Danish, who feel if "Allah wants us to reach home, we surely will".

Both of them worked at a chemical plant in Delhi, and said, they have been "kicked out" after the lockdown was imposed, making their survival difficult in the national capital.

"We don't have money to pay rent now, or buy food, we have to go home now, what option do we have," Sunny said.

Danish alleged that the poor have been "abandoned" by the government and left in the lurch.

"The government has money to bring home Indians stranded abroad, but can't take home the Indians who have been toiling hard all these years. Is it fair to us," he asked.

"But, Inshallah, we will reach home if the Almighty wants us to, and will be joining our family for Eid, though it will hardly be a celebration this time. But, we want the comfort of being with our family at least," Sunny said.

Eid which marks the end of the holy Ramzan month, will be celebrated either on Sunday or Monday, depending on sighting of the moon.

Lakhs of migrant labourers stranded away from home in Delhi and other big cities have been attempting to reach home in the last two months, a large number of them walking on foot after they found no mode of conveyance.

The coronavirus death toll in Delhi has mounted to 208, while 660 fresh cases of COVID-19 infection reported on Friday, the highest single-day spike here, took the total in the city to 12,319.

Roshan Shrivastav (19), his nephew Shivam Shrivastav (19) and friend Prince Gupta (21), all hailing from Siwan in Bihar, were seen standing on a pavement after being told by the police to turn back from the barricade posted bear the Delhi-UP border.

"We live together in Baljeet Nagar in West Delhi, in a single room. I had come from Bihar after Holi, seeking a job, but then I got stuck in lockdown here without a job. Whatever money I had brought, and Rs 10,000 our parents had sent online, all has got exhausted in these three months," Roshan lamented.

"Our landlord has been very kind, and didn't even ask for any rent after the lockdown, but how long can we survive on charity. And, I don't like being dependent on someone, so we want to go home," he said.

Roshan said, he and Shivam, both also write and sing songs in Hindi and their native tongue Bhojpuri.

"We have written a few lines on lockdown crisis too -- 'Hum mazdooran ke ghar bhejwa da sarkar, nahin to ketna log hiyan par ho jai bimar' (please send us home or else many would fall sick here)," Shivam said, as he stood in scorching heat of May, carrying his leftover cash in pocket and hope in heart. 

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News Network
April 4,2020

Mumbai, Apr 4: As many as six Central Industrial Security Force (CISF) personnel stationed at Mumbai airport in Maharashtra have tested positive for coronavirus, taking the total number of positive cases among the central force to 11. The first case of a CISF jawan being diagnosed with the viral disease was reported on March 28. 

After the first case, the armed police force reported four more cases of COVID-19 among the personnel stationed at the airport on Thursday. On the same day, the CISF collected samples of 146 staff and sent them to Kasturba hospital for testing. The results, which arrived on Friday, recorded six more COVID-19 cases among, reported news agency.

The personnel were posted at Kharghar adjoining Mumbai, a senior official told news agency.

As of now, there are 14 COVID-19 cases in Panvel Municipal Corporation (PMC) area in Mumbai. Kharghar comes under the civic body's jurisdiction.

All the 146 CISF personnel were shifted to a quarantine centre at a facility at Kamothe reported the Times of India.

Maharashtra reported 67 new COVID-19 cases, taking the total tally to 490. A total of 26 deaths have been reported in the state.  

In the meantime, the Centre on Friday said there is no shortage of medical supplies across the country to fight COVID-19 outbreak.

"The government of India is making sure that all the essential medical supplies are in place to fight COVID-19. Sixty-two lifeline Udan flights transported over 15.4 tons of essential medical supplies in the last five days," Union Minister for Chemical and Fertilisers DV Sadanada Gowda said in a tweet.

The government is also paying full attention to the manufacturing activities of essential items like pharmaceuticals and hospital devices. For this, over 200 units in Special Economic Zones (SEZs)  are operational, he added.

"A Central Control Room has also been set up for close monitoring of the distribution of essential medical items and to address logistic related issues," Gowda said.

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