India Auto Sales Fall Further in August

Indian automobile sales continued to decline in August due to sluggish demand, amid tight liquidity against the backdrop of an ongoing economic slowdown.

Overall auto sales for August fell 23.55% from a year ago, latest data by the Society of Indian Automobile Manufacturers showed Monday. Passenger-vehicle sales during the month dropped 31.57% on year, while two-wheeler sales declined 22.24% on year, the data showed.

The data reflects weak consumer sentiment in the country, even as the Indian government and central bank have undertaken measures to boost demand and liquidity, which automakers have said aren't enough to improve sentiment.

The Indian auto industry is seeking a cut in the goods and services tax to boost immediate demand ahead of the key festive season.

Some analysts say the latest data might help make the case for a GST cut, but economists flag revenue concerns weighing on the government's mind as the downturn hurts its coffers.

Write to Saurabh Chaturvedi at

  (END) Dow Jones Newswires
  09-09-19 0614ET
  Copyright (c) 2019 Dow Jones & Company, Inc.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.