India’s total auto production fell by 11pc in Jan 2020 from the prior year. The country produced 2,151,544 vehicles, including passenger and commercial vehicles, three-wheelers, two-wheelers & quadricycles in Jan 2020 from 2,405,883 in the prior year, according to Society of Indian Automobile Manufacturers (SIAM).
Industry Outlook 2020
Auto production is likely to remain slow in the coming months impacted by the Coronavirus outbreak in China and the outlook for the quarter ending March remains negative. With the Chinese manufacturing activities resuming on Monday, most market participants are in a ‘wait-and-see’ mode and seek clarity about resumption of supply of spare parts. China is the largest global supplier of auto spare parts.
In the coming days, auto demand is likely to recover and the demand for finished steel and aluminium products are expected to rise as liquidity increases in the markets.
Total automobile exports fell by 24.54pc in Jan’20 from the prior year. Total exports of passenger vehicles and three-wheelers dipped by 7.17pc and 2.17pc, respectively.
Exports of two-wheeler grew by 23.40pc from the prior year.
In Jan 2020, sales of vehicles in all categories declined by 14pc to 1,739,975 units from 2,019,253 units in Jan 2019.
Total sales of passenger vehicles declined by 6pc to 262,714 units from 280,091 in Jan 2019. Total commercial vehicle sales declined by 14pc to 75,289 units from 87,591 units in the year prior.
Sales of passenger cars in the domestic market dropped by 8.10pc to 164,793 units from 179,324 units in the prior year.
Sales of three-wheeler grew by around 12.69pc in Jan’2019 to 60,903 units from 54,043 units in Jan 2018.
Sales of two-wheeler dipped by 16.06pc to 1,341,005 units in Jan 2020 from 1,597,528 units in the prior year.
Scooter sales declined by 16.21pc to 416,594 units from 497,169 units in the prior year and motorcycle sales declined by 15.17pc to 871,886 units from 1,027,766 units.
Utility vehicles segment, however, continued its momentum and reported a growth of over 2pc to 84,929 units in Jan 2020 from 82,803 units in Jan 2019.