new Delhi. The government’s tax cuts, along with cheaper loan rates in the country, seem to have had no impact on car sales in January. Car sales in January declined by more than eight percent compared to January of the previous year. According to Rajan Vadhera, president of the Society of Indian Automobile Manufacturers (SIAM), the decline in vehicle sales in India was due to increase in vehicle holding costs and sluggish GDP growth.
Except for the three-wheeler, there has been a decline in sales of all other categories of vehicles.
This trend of declining vehicle sales has been going on for more than a year. Comparing Siam’s previous month’s sales data with last year’s January data showed that domestic passenger vehicle sales fell 6.2 percent to 262,714 vehicles. The decline in car sales is 8.1 percent, while the decline in two-wheeler sales is 16.06 percent.
Industrial vehicle sales, an indicator of industrial health in the economy, declined 14.04 percent to 75,289 vehicles last month, while all-class vehicle sales fell 13.83 percent to 17,39,975 vehicles from 20,19,253 in January 2019.
Vadhera, however, said he hoped the government’s recent announcements in infrastructure and rural economy would help in the sale of vehicles, especially in the commercial vehicles and two-wheeler category. (IANS)
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