Major auto companies witness a downfall in production

During the time of April-July, India witnessed a downfall in the production of Passenger vehicle till up to 13.18%.

Big names in the industry like Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Ford, Toyota, and Honda reduced their output massively.

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According to the latest data by the Society of Indian Automobile Manufacturers (SIAM), Hyundai Motor India Ltd (HMIL) and Volkswagen India were the only two main manufacturers which saw production grow marginally during the period.

Total Passenger vehicles (PV) production in the April-July period stood at 12,13,281 units as against 13,97,404 units in the same period last fiscal, down 13.18%, SIAM said.

Market leader Maruti Suzuki India’s (MSI) production during the period stood at 5,32,979 units, down 18.06% from the comparable period last fiscal.

Mahindra & Mahindra (M&M) also reduced its production by 10.65% at 80,679 units, while that of Ford India stood at 71,348 units, down 25.11% from the year-ago period. On the other hand, Tata Motors’ production was also down 20.37$% at 59,667 units.

Similarly, Honda Cars India’s output during the period under review stood at 47,043 units, down 18.86% from the corresponding period last fiscal.

Toyota Kirloskar Motor (TKM) reduced its production during the period by 20.98% to 45,491 units.

Whereas, HMIL, grew its production marginally by 1.77 percent at 2,39,671 units in the April-July period.

Also, Volkswagen India’s production increased by 1.05% to 36,929 units.

Therefore, in the two-wheeler segment also total production was down 9.96% at 78,45,675 units as against 87,13,476 units in the same period last fiscal, as per SIAM data.

Market leader Hero MotoCorp’s production was at 24,66,802 units, down 12.03% from the year-ago period.

Similarly, Honda Motorcycle and Scooter India (HMSI) also reduced production by 18.5 % while TVS Motor Co went down by 8.07 percent.

Royal Enfield also cut its output by 22.35%. In contrast, Bajaj Auto increased its production by 4.47% during the period at 13,89,396 units. The current slowdown in the auto industry has forced manufacturers to reduce production which has resulted in the retrenchment of 15,000 casual and temporary workers so far.

As a result of which, nearly 2 lakh jobs were cut in the last three months while components industry body ACMA has cautioned that nearly 10 lakh jobs were on the line due to the market slump.