INSUBCONTINENT EXCLUSIVE:
vehicle sales slumped 23.7 per cent in September, the eleventh straight month of declines, prompting an industry body to flag more job cuts
Manufacturers (SIAM) data showed, while passenger car sales dived 33.4 per cent to 131,281 units.SIAM's data comes as the domestic
automobile industry faces a crippling slowdown in demand that has led to production cuts and thousands of job losses
The industry is seeing its longest ever streak of sales decline."We are preparing for best-case and worst-case scenarios worst case there
will be more production and job cuts," said SIAM president Rajan Wadhera.Car and auto component makers have cut thousands of jobs and halted
some production as the industry grapples with various challenges amid a broader economic slowdown
Mr Wadhera said it expected some improvement in the situation on the back of the festive season.However, Mr Wadhera refrained from giving
out a forecast for future sales, saying SIAM would maintain a cautious stance until October performance numbers are in.Aggregate revenue for
listed automobile companies is estimated to have dropped by one-fourth in July-September, CRISIL, the Indian arm of S-P rating agency, said
in a note on Thursday.The drop in auto sales is also expected to hit earnings for insurance companies such as New India Assurance and ICICI
Lombard General Insurance in the September quarter.Last month, car companies such as Maruti Suzuki India have lowered prices on some models,
responding to the government's move to cut corporate taxes in a bid to revive economic growth.The company saw a 24.4 per cent drop in sales
in September.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
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