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Auto industry hits 19-year low; stocks of Maruti Suzuki India, Apollo Tyres, Hero MotoCorp tumble

The Auto Industry as a whole is witnessing a 19-year low amid dwindling demand and block closures. Auto stocks of all major including Maruti Suzuki and Hero MotoCorp were in red on BSE.

PTI PTI
New Delhi Updated on: August 13, 2019 18:40 IST
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Image Source : AP PHOTO

Unsold vehicles have piled up resulting many including Tata Motors and Mahindra to go for block closures. (AP File Photo)

Auto stocks tumbled up to 9 per cent on Tuesday after industry body SIAM reported that automobile sales in India witnessed sharpest decline in nearly 19 years in July, dropping 18.71 per cent, rendering almost 15,000 workers jobless over the past two-three months.

Shares of Motherson Sumi Systems tanked 8.94 per cent, Bharat Forge fell 6.13 per cent, M&M plunged 6.11 per cent, Bosch fell 5.43 per cent, Eicher Motors declined 5.31 per cent and TVS Motor Company fell 5.07 per cent. 

Besides, Maruti Suzuki India fell 4.72 per cent, Ashok Leyland declined 4.35 per cent, Apollo Tyres fell 2.80 per cent, Hero MotoCorp declined 2.14 per cent, Bajaj Auto fell 1.51 per cent and Tata Motors declined 0.04 per cent on the BSE.

India Tv - The auto sector is witnessing the sharpest decline in 19 years. Several workers in production factories have lost jobs due to block closures. 

Image Source : PTI

The auto sector is witnessing the sharpest decline in 19 years. Several workers in production factories have lost jobs due to block closures. 

The BSE auto index fell 3.88 per cent to close at 15,438.01.

As per data released by the Society of Indian Automobile Manufacturers (SIAM), vehicle sales across categories, including passenger vehicles (PVs) and two-wheelers, stood at 18,25,148 units last month as against 22,45,223 units in July 2018.

The previous biggest decline across overall domestic automobile sales was recorded in December 2000, when it fell 21.81 per cent.

SIAM Director General Vishnu Mathur said almost 15,000 jobs, mostly temporary and casual workers, have already been lost in automobile manufacturing companies over the last two to three months.

Besides, over a million jobs are on the line in the automotive components segment, he added. 

Also Read | Maruti Suzuki, India's biggest carmaker, cuts temporary jobs as sales plunge

Also Read | Share markets get bearhug of the bad kind, Sensex tanks by more than 600 points

(Except the headline, the copy has not been edited by IndiaTvNews.com)

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