India’s new vehicle sales suffer 1st drop in 6 years in FY 2019-20
NEW DELHI, NNA – India’s new vehicle sales suffered their first drop in six years in the financial year to March 2020 as tightened auto loans and insurance premium hikes have continued to dampen consumer sentiment amid an economic slowdown.
Total sales of passenger cars and commercial vehicles plunged 20.3 percent from a year earlier to 3,493,367 units, according to data released Monday by the Society of Indian Automobile Manufacturers.
The world’s fourth-largest automobile market experienced an unprecedented downturn during the year from April 2019 to March 2020.
In the full year, sales of passenger cars tumbled 17.8 percent from a year earlier to 2,775,679 units. Those of commercial vehicles plummeted 28.8 percent to 717,688 units, the data showed.
All segments, such as utility vehicles and light commercial vehicles, sustained double-digit decline in sales in the full year. Of 20 passenger car makers, 16 saw falling sales, while 11 of 12 commercial vehicle manufacturers faced downturns in the reporting year.
Automotive production and sales in the South Asian country sharply dropped in February and March this year, triggered by the global coronavirus pandemic.
In March alone, passenger car sales more than halved on year to 143,014 units, and commercial vehicle sales nosedived 88.1 percent to 13,027 units, according to the industry body’s data.
A continued nationwide lockdown is looming over car sales in the new financial year starting this month.