Stocks

Auto stocks slide as July sales see worst drop since Dec 2000

Reuters Bengaluru | Updated on August 13, 2019 Published on August 13, 2019

The Indian auto industry has been going on a prolonged slump.

The shares of automobile companies fell sharply on Tuesday after trade body data showed passenger vehicle sales in July recorded their worst percentage fall since December 2000.

The domestic passenger vehicle sales dived 30.9 per cent in July, according to data released by the Society of Indian Automobile Manufacturers.

Read also: Passenger vehicles sales sink for ninth month in July

The Auto index was down 3.64 per cent. The shares of Maruti Suzuki dropped 4.29 per cent, Mahindra and Mahindra fell 5.7 per cent and TVS Motor skidded 4.63 per cent.

The auto sector is in crisis due to high taxes and insurance costs and unavailability of credit to customers. The automakers have resorted to cut in production and job layoffs as crisis deepens.

Published on August 13, 2019
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