CV sales plunge while three-wheelers steal the limelight

In the month of July, Commercial vehicle (CV) sales slumped by 14 per cent to 23,118 units as compared to 26,815 units in July 2018. However, sale of three-wheeler segment registered growth of 3 per cent to 55,850 units in July 2019 from 54,250 units in July 2018.

Companies having strong presence in the three-wheeler space are Bajaj Auto, TVS motors and Atul Auto. However, Bajaj Auto reported first ever decline in its overall sales in last two years.

Talking about passenger vehicles (PV), retail sales of the segment dropped by 11 per cent to 2,43,183 units in July 2019 as compared to 2,74,772 units the same period last year. PV, the most affected segment during this slowdown in auto industry, witnessed highest drop since December 2000 due to weak demand across the country, higher ownership cost, and liquidity crisis.

In July, the two-wheeler segment marked 5 per cent fall in sales to 13,32,384 units as compared to 14,03,382 units in the year-ago period. Total sales across all the categories declined by 6 per cent to 16,54,535 units in July 2019 as against 17,59,219 units in July 2018.

The sale of vehicles across all the categories in the country dipped by 18.71 per cent to around 18.25 lakh units in July 2019, down from about 22.45 lakh units a year ago in the same month, posting steepest fall in nearly 19 years.

The overall automobile industry is going through a rough ride and amid weak demand, many auto makers have shut down their production plants to normalise high inventories. Besides, many employees are on the verge of losing their jobs.