Automobile Sales in September 2024 - FADA

 

The overall automobile sales in September,2024 witnessed a significant decline of -9.26% YoY, says Federation of Automobile Dealers Association.

Two wheeler segment witnessed YoY decline of 8.51%, driven by weak consumer sentiment, low inquiries, and delayed purchases due to heavy rains and seasonal factors like Shraddh

Passenger Vehicles like cars, SUVs witnessed Steep YoY decline of 18.81%. 
Commercial vehicle witnessed YoY decline of 10.45%, with only marginal Month on month growth of 1.46%, reflecting subdued market conditions and weak government spending

Three wheelers and tractor segments reported Marginal growth of 0.66% YoY and 14.69% YoY respectively, attributed to positive customer engagement and increasing demand for e-rickshaw options

Passenger Vehicles (PV) Dealers are facing all time high inventory levels of 80-85 days, equivalent to 7.9 lakh vehicles worth ₹79,000 crore due to aggressive OEM dispatches. Dealers are under financial pressure, with increased cash flow challenges
FADA urges the RBI to issue stricter guidelines on channel funding policies to mitigate the financial risk faced by dealers. 


FADA said it is “Cautiously Optimistic” on the overall outlook. “While the festive season presents an opportunity for recovery, the high stakes in October make it crucial for dealers and OEMs to clear existing inventory. Strategic inventory management and targeted festive promotions are key to capitalizing on the expected surge in demand and stabilizing market conditions,” it said.

Source: The Hindu

Core Sector in India - Core Sectors and their weightage in Index of Industrial Production(IIP)

What are the core sectors of India?

The Core Sector of India includes Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement, and Electricity. It comprises 40.27 percent of the weight of items included in the Index of Industrial Production (IIP). The Core sectors of an economy are the primary or important industries.

The Office of the Economic Adviser (OEA), Department of Industrial Policy and Promotion (DIPP), and Ministry of Commerce and Industry compile and publish the index.

The Index of Key Industries evaluates the performance of the eight core industries of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement, and power in aggregate and individual production terms. These industries serve as the foundation for all other industries. The current year’s production of these industries is computed using the 2011-2012 base year.

• Core industries include eight sectors of the Indian economy that are mentioned below:

Sector	Description	Weightage
Coal	Coal production, excluding Coking coal.	10.33 %
Electricity	generation of thermal, nuclear, hydro	19.85 %
Crude Oil	Total crude oil production.	8.98 %
Cement	Production in large plants and mini plants.	5.37 %
Natural Gas	Total production of natural gas.	6.88 %
Steel	Production of alloy and non-alloy steel only.	17.92 %
Refinery Products	Total refinery production.	28.04 %
Fertilizer	Urea, ammonium sulfate, calcium ammonium nitrate, complex grade fertilizer, and single superphosphate, among others.	2.63 %