India auto industry in crisis as sales plummet for 9th month

  • Tuesday 13, August 2019 03:18 PM
Sharjah 24 – AFP: India's automobile industry is facing one of its worst ever downturns, with slumping sales of cars and motorcycles causing job cuts and posing a serious challenge for Narendra Modi in his second term as prime minister.
India's passenger car sales shrank for the ninth month in a row, falling 31 per cent in July, according to industry data released on Tuesday.

Hit by a consumption slowdown, the fall in car sales has triggered job losses, forced factories to temporarily halt production and lead to the closure of many dealerships.

The sale of motorcycles and scooters has also slumped - dipping 19 per cent in July compared to a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

The downturn in India's auto sector - which contributes about 7.5% of India's GDP - poses a serious threat to Modi as his government attempts to fix a slowing economy and reverse a 45-year-low unemployment rate.