Post-demonetisation auto sales plummet to 16-year low

Apart from the informal labour sector, if one industry is hit hard it must be the automobile sector. According to the latest data published by the Society of Indian Automobile Manufactures (SIAM), the December sales in domestic market stood at 1,221,929 units, 18.66% lower than December 2015 while exports suffered negative sales of 3.12%.

Small commercial utility vehicle remains the only segment to register growth at snail paced 1.15% at 31,178 units. The two-wheeler segment saw its biggest dip with 22.04% to 9,10,235 units since SIAM started collecting data in 1997. Rural India contributes to half of two-wheeler sales, which have been hit hard resulting to a record dip.

Vishnu Mathur, director general, SIAM, told reporters, “This is the highest decline across all categories since December 2000 when there was a drop of 21.81 percent in sales. The reason is largely due to the negative consumer sentiment in the market due to demonetisation.”

Domestic car sales also tanked down by 8.14% to 1,58,617 as against 1,72,671 units recorded last year at the same time, while ales of commercial vehicles were down 5.06 per cent at 53,966 units in December 2016.

This December witnessed the largest discounts on domestic sales but still failed to inspire buyers. The budget to be presented remains the only hope which could bring back buyers if some incentives are announced as a good monsoon and 7th pay commission pay rise have failed to wield magic.

Sources: The Hindu, Economic Times

Honda to recall over 1.9 lakh cars in India, faulty airbags to be rectified

Honda cars India Ltd. announced on Thursday that it will recall as many as 1,90,578 cars from the previous generation of Accord, Civic, City and Jazz models as part of the global exercise to rectify faulty airbags made by Takata.

Honda Cars India Ltd. (HCIL) said that they will replace the faulty airbags voluntarily of the stated models of the cars manufactured between 2003 and 2011.

The replacement will be free of cost and will be carried out in a phased manner, starting with the CR-V and Civic in September. The company will communicate directly with the customers, said HCIL in a statement. Honda car owners can check if their vehicles will have to be sent to dealerships by submitting their 17-character alpha-numeric Vehicle Identification Number on a microsite available on hondacarindia.com, reported The Indian Express.

As many as 1, 37,270 units of the ‘City’ manufactured between 2008-2011 will be covered. Hatchback car, Jazz will also be affected with over 15,000 units to be recalled. HCIL also added that over 1,514 units of the premium SUV, CR-V will be affected by it.

Due to faulty airbags manufactured by Takata corp. in Japan, millions of vehicles have been affected and recalled including those from BMW, Chystler, Ford, General Motors etc.

Read more: Scroll , Indianexpress