The automobile sector has been experiencing a slump for several months with nearly all manufacturers reporting falling sales due to subdued consumer sentiment amid an economic slowdown.
Vehicle sales across categories registered a decline of 18.71 per cent to 18,25,148 units from 22,45,223 units in July 2018, it added. In fact, all vehicle categories witnessed a decline in sales during the month.
The slowdown in auto sales also stems from a severe liquidity crunch in the non-banking financial sector which has dried up lines of credit to both auto dealers and potential car buyers.
Two-wheeler manufacturer TVS Motor Company on Tuesday reported sales of 39.14 lakh units during 2018-19 which fetched revenue of Rs 18,217.5 crore, up 19.3 per cent in the year-on period.
Amid the rising pressure on Auto industry, Maruti Suzuki chairman RC Bhargava on Monday expressed apprehensions that he fears factors like US embargo on Iranian crude imports and new emission norms playing spoil sport.