India’s passenger vehicles sales sink for ninth month in July

In this photograph taken on July 23, 2019 workers assemble a car at a FCA India Automobiles manufacturing facility in Ranjangaon, some 200km east of Mumbai. (AFP)
Updated 13 August 2019

India’s passenger vehicles sales sink for ninth month in July

  • India’s S&P BSE auto sector index has fallen 23 percent this year, with the country’s top automaker Maruti Suzuki’s market valuation falling 18.3 percent

NEW DELHI: India’s domestic passenger vehicle sales fell for the ninth straight month in July, an auto industry body said on Tuesday, amid a deepening crisis in the country’s automobile sector that has triggered large-scale job losses.
Sales of passenger vehicles to car dealers fell 30.9 percent to 200,790 in July, data released by the Society of Indian Automobile Manufacturers (SIAM) showed. Commercial vehicles sales fell 25.7 percent to 56,866 units, SIAM said.
Motorcycle and scooters sales fell 16.8 percent to about 1.51 million units, while passenger car sales fell 36 percent to 122,956 units, the data showed. Domestic passenger vehicle production was down nearly 17 percent in the month.

FASTFACT

23% - India’s S&P BSE auto sector index has fallen 23 percent this year.

“The data shows an urgent need for a revival package from the government. The industry is doing everything possible to increase sales, but it needs government support,” Vishnu Mathur, director general of SIAM, said.
India’s S&P BSE auto sector index has fallen 23 percent this year, with the country’s top automaker Maruti Suzuki’s market valuation falling 18.3 percent.
The fall in car sales comes at a time when demand for consumer goods is falling amid signs of an economic slowdown in India.


S&P downgrades trio of Dubai developers as pandemic hits property and retail

Updated 14 min 20 sec ago

S&P downgrades trio of Dubai developers as pandemic hits property and retail

  • Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices

RIYADH: The credit ratings of three Dubai property companies were downgraded by S&P as the coronavirus pandemic hits confidence in the retail and real estate sectors.
S&P Global Ratings reduced the credit ratings for the real estate developer Emaar Properties as well as Emaar Malls to +BB from -BBB with a negative forward outlook, adding that it sees a “weakening across all its business segments” in 2020. S&P also cut its rating for DIFC Investments to +BB from -BBB, while keeping a stable outlook.
Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices, heaping pressure on governments, companies and employees.
The ratings agency expects the emirate’s economy to shrink by 11 percent this year
“The supply-demand imbalance in the realty sector appears to have been exacerbated by the pandemic. We now expect to see international demand for Dubai’s property to be subdued, and the fall in residential prices to be steeper than we had expected, lingering well into 2021” S&P reported.
Despite easing restrictions and the opening of the economy, S&P said that overall macroeconomic conditions remained challenging.
Global travel restrictions and social distancing constraints “significantly weigh on Dubai’s tourism and hospitality sectors” the rating agency reported.
Still, Dubai’s tourism chief was upbeat on the emirate’s prospects when international tourism resumes.
“Once we do get to the other side, as we start to talk about next year and later on, we see very much a quick uptick. Because once things normalize, people will go back to travel again,” Helal Al-Marri, director general of Dubai’s Department of Tourism and Commerce Marketing told AFP in an interview.