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Automobile sector suffers worst fall in sales since 1998, Car and SUV sales slide further

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Automobile sector suffers worst fall in sales since 1998, Car and SUV sales slide further

The downturn in automobile sector worsened with sales shrinking further to record the steepest ever fall in August, a record fall in 10th straight month, and huge job losses coming in its wake.

Passenger car sales declined by 41 per cent year-on-year (YoY) in August to 1,15,957 units as compared with 1,96,847 units in the same month last year, media reports said.

As per the latest report shared by Society of Indian Automobile Manufacturers (SIAM), the passenger vehicle sales domestic market also declined by around 32 per cent to 1,96,524 units during last month as against 2,87,198 units in the corresponding month last year.

Passenger car sales fell 41.09% to 115,957 units.

This is the worst-ever fall for both the categories since SIAM started recording the data in 1997-98. Truck and bus sales dropped 39%. Two-wheeler sales fell 22% to 1.5 million units.

The slump in auto sales had led to massive job loss in the sector. Automakers, parts manufacturers and dealers have laid off about 350,000 workers since April, Reuters reported. Companies from Suzuki Motor Corp.’s local unit to Mahindra & Mahindra Ltd. have cut production and laid off workers to cope with the slowdown.

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Hinduja Group flagship firm Ashok Leyland today – Monday, Sep 9 – announced non-working days at its various manufacturing facilities following weak demand. “Following are the non-working days at our various plant locations during September 2019 due to continued weak demand for our products”, the company said in a BSE filing.

The move by the company follows slowdown in the automobile sector that has forced many manufacturers and component suppliers to cut production and plan temporary plant closures.

Accordingly, Chennai-based heavy commercial vehicle major has announced 16 non-working days for its facility in Ennore, five days at Hosur (Tamil Nadu) unit, 10 days each in Alwar (Rajasthan) and Bhandara (Maharashtra) unit and 18 days in Pantnagar (Uttarakhand) facilities.

Last month, Chennai-based TVS Group auto component maker Sundaram Clayton, automobile major Maruti Suzuki, and two-wheeler maker Hero MotoCorp had announced a suspension of production at their facilities in line with market demand. Maruti Suzuki, India’s largest carmaker, had last week said it has suspended production at its Gurugram and Manesar plants in Haryana for two days. Maruti Suzuki has closed both plants simultaneously for two days for the first time.

Market leader Maruti Suzuki India had reported a 36 per cent YoY decline in sales during August to 93,173 units (1,45,895 units).

Hyundai Motor India also reported a double-digit YoY decline in sales (17 per cent) to 38,205 units (45,801 units in the same month last year).

Honda Cars India and Tata Motors, in particular, reported the most dismal numbers, selling less than half of the units they sold last year in August.

In the commercial vehicle segment, the sales declined by 39 per cent to 51,897 units in August, a drop of 39 per cent YoY as compared with 84,668 units in August 2018.

In the two-wheeler segment, both scooter and motorcycle sales declined by a little more than 22 per cent YoY. While the scooter sales during the month were recorded at 5,20,898 units (versus 6,69,416 units), the motorcycle sales fell to 9,37,486 units (against 12,07,005 units).

Two-wheeler makers including Hero MotoCorp, Honda Motorcycle and Scooters India, Bajaj Auto and TVS Motor also had reported a decline in sales during August.

Three-wheeler sales also declined by 7 per cent YoY to 58,818 in August as compared with 63,199 units in the same month last year.

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The automobile sector requires an immediate decision from the government on GST reduction (from 28 per cent to 18 per cent) which may help boost sales during the festive season, said media reports on basis of inputs from companies and industry leaders.

Recently, at the SIAM and ACMA conventions, the industry demanded a quick intervention from the government on reducing GST, at least for some time, to gain back the sentiments in consumers.

However, the GST fitment committee that held a meeting for two consecutive days last week suggested no assurance for any GST cut for the automobile sector.

The industry has to wait for the GST Council meet on September 20 for a holistic picture and if they get any relief from the decisions that are made on the day.

Narendra Modi government has lifted a ban on new vehicle purchases by state-run departments and offered other concessions. Transport Minister Nitin Gadkari last week said he’ll convey a demand for a lower levy on petrol and diesel vehicles to the finance minister.

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Xbox announces 3,200 layoffs as Asha Sharma outlines major restructuring plan

Xbox has announced plans to lay off 3,200 employees over the next year while introducing a major restructuring programme that includes management changes, studio restructuring and cost-cutting measures.

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XBOX layoff

Xbox has announced plans to reduce its workforce by 3,200 employees, representing around 20 per cent of its total staff, over the coming year as part of a broader restructuring programme linked to Microsoft’s increased investment in artificial intelligence.

According to an email shared with employees by Asha Sharma, the company will begin the process immediately, with 1,600 employees leaving on Monday, while the remaining job reductions will take place during FY27. The company also plans to divest four gaming studios and is preparing to separate from another.

Business reset planned amid financial challenges

In her message to employees, Sharma said the company’s current financial position required significant changes, stating that Xbox’s business was operating at substantially lower margins than comparable platform and publishing companies.

She said the layoffs were not a reflection of employees’ commitment or abilities but were part of a wider effort to strengthen the company’s long-term business.

The workforce reduction comes as Microsoft continues implementing AI-focused cost-cutting measures across its operations. Overall, the technology company is reportedly cutting 4,800 jobs, with Xbox accounting for the largest share.

Sharma also described the gaming sector as experiencing one of its most challenging hardware periods and said the company needed to “reset Xbox” to improve its future performance.

Company to streamline operations and reduce management layers

As part of the restructuring strategy, Xbox plans to simplify its organisational structure, revise its content portfolio and improve platform operations.

According to Sharma, the company currently loses 64 cents for every dollar invested annually, making operational efficiency a key priority.

She said Xbox would increasingly support independent game creators by offering open development tools and broader audience access.

The restructuring will also see Mojang and King report directly to Sharma. She said both studios have evolved into major gaming platforms with large monthly active player bases and will play a central role in Xbox’s future strategy.

To improve decision-making, the company plans to significantly reduce its management hierarchy. Sharma said some departments currently have as many as 14 management layers, which slow down operations. Xbox aims to reduce this to no more than five layers, and in some cases, only three.

The company will also reduce vendor spending by 50 per cent as part of its cost-saving measures.

Helen Chiang promoted to Chief Operating Officer

Alongside the restructuring announcement, Sharma confirmed the promotion of Helen Chiang to the newly created position of Chief Operating Officer.

Chiang will oversee profit and loss responsibilities across Xbox’s content, hardware, platform and services divisions while reporting directly to Sharma.

According to Sharma, the new operating structure is intended to improve investment decisions, strengthen accountability and better integrate the company’s various business units.

Despite the ongoing restructuring and job cuts, Sharma said Xbox remains committed to long-term growth and plans to continue investing heavily in the business, while placing greater emphasis on disciplined spending and strategic priorities.

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India News

Bank holiday today: Are banks open or closed on June 29? Here’s what RBI calendar says

Banks in Himachal Pradesh and Mizoram will remain closed on June 29, 2026, due to regional holidays, while banking operations will continue normally in most other states.

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Bank Holidays

As June comes to an end, many customers are wondering whether banks across the country are open on June 29, 2026. According to the Reserve Bank of India’s (RBI) holiday calendar, bank operations will not be affected nationwide, but branches in some states will remain closed due to local holidays.

Banks closed in these states on June 29

Banks will remain shut in Himachal Pradesh on Monday, June 29, on account of Sant Guru Kabir Jayanti. In addition, bank branches in Mizoram will remain closed to observe Remna Ni, a regional public holiday.

However, bank branches in most other states and Union Territories are expected to function normally as June 29 is not a nationwide banking holiday.

Will online banking services remain available?

Even when physical branches remain closed, customers can continue using digital banking facilities. Services such as internet banking, mobile banking, UPI transactions, ATM withdrawals and cash deposits at ATMs will remain operational.

Customers planning to visit a bank branch are advised to check with their local branch beforehand, as holiday schedules may vary depending on the state and local observances.

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India News

Union Budget 2026 highlights: Nirmala Sitharaman Raises Capex to Rs 12.2 Lakh Cr, West Bengal Gets Major Allocation

Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026 in Parliament today. Follow this space for live updates, key announcements, and policy insights.

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Finance Minister Nirmala Sitharaman arrives to present Union Budget 2026

Finance Minister Nirmala Sitharaman will shortly present the Union Budget 2026 in the Lok Sabha, marking her ninth consecutive Budget. The annual financial statement is expected to outline the government’s policy priorities, reform agenda and spending plans for the coming year. Stay tuned for live updates, key announcements and immediate reactions as the Budget speech unfolds.

Finance Minister Nirmala Sitharaman tabled her ninth Union Budget today, beginning her speech at 11 am.

Nirmala Sitharaman is set to present her ninth Union Budget today, with the finance minister scheduled to begin her speech at 11 am.

Budget 2026 live updates: Presenting the Union Budget for 2026–27, Finance Minister Nirmala Sitharaman said the occasion coincided with Magh Purnima and the birth anniversary of Guru Ravidas. She noted that over the past 12 years, India’s economic journey has been defined by stability, fiscal discipline, sustained growth and moderate inflation.

The budgeted fiscal deficit for fiscal 2026 is estimated at 4.4 per cent of gross domestic product (GDP)

Planned capital expenditure this fiscal year Rs 11.2 lakh crore

Rare earth corrdiors in Odisha and Kerala

Hi-tech tool rooms to be set up by PSUs

Construction equipment scheme to be launched

Container manufacturing scheme for Rs 10,000 crore over 5 years

Rs 10,000 crore SME Growth Fund

Semi-conductor mission to get Rs 40,000 crore

Rs 12.2 lakh crores for infrastructure development

Dedicated RITES to repurpose land of Central PSUs

20 new waterways over next 5 years to be connected

7 high-speed corridors on rail

High-level committee on banking for next phase of Viksit Bharat

Capital expenditure hike of to ₹12.2 lakh crore in Budget 2026, with West Bengal receiving a significant share of allocations.

Mahatma Gandhi Gram Swaraj Initiative aimed at boosting the khadi, handloom, and handicrafts sectors.

High-speed rail corridors: Mumbai-Pune, Pune-Bengaluru, Hyderabad-Bengaluru, Chennai-Bengaluru, Delhi-Varanasi, Varanasi-Siliguri, Pune-Hyderabad

Five university campuses to be established near industrial corridors

Lakpati Didi program expanded in Budget 2026 to reach more beneficiaries across India.

Fiscal deficit for FY26 revised to 4.4%; Budget Estimate for FY27 set at 4.3%.

TCS on overseas tour packages cut to 2% to ease travel costs

Tax holiday to foreign companies that provide cloud services by setting up data centres in India till 2047

17 cancer drugs exempted from import duties

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