Explained in 7 charts: Cause and magnitude of automobile slowdown

While auto parts exports have remained unchanged, car and two-wheeler exports have shrunk, suggesting that demand for completed vehicles is a bigger worry in global markets for Indian auto players

The magnitude of slowdown in automobiles sales is worrying. Never since the turn of the millennium have things gone awry to this extent for the industry, though there have been sustained periods of lull before (Chart 1). Contraction of 19 per cent in auto sales in July 2019 was the worst since April 2001. 

While the gloom in passenger vehicles started early, commercial vehicles sales, an important indicator of economic activity have now followed (Chart 2). Overall recovery is not in sight if we look at vehicle registration at the user end. But two and three-wheelers seem to be doing