Sales of passenger cars have been slowing down significantly in India for some time – now the country has experienced the sharpest drop in monthly car sales in 18 years. Sales contracted 31 percent in July.
Car sales were down nine straight months year-over-year and four consecutive months, as seen in our graphic with data from Auto Punditz
. Previously, car sales in India
had risen by 33 percent over the past five years, according to CNN. Now the massive growth market is suffering amidst a global slowdown and fears of recession. Two-wheeler and tractor sales were also down by around 12 and 14 percent, respectively.
India had previously been on track to overtake Germany and Japan to become the third largest car market in the world behind China and the U.S.
Jobs slashed because of the losses number around 330,000, caused by dealerships closing and component makers letting workers go. The Automotive Component Manufacturers Association of India called the state of things a “crisis-like situation”.