India's IIP data contracts -0.3% in December, auto manufacturing drops -12.1%
In fact, 16 of the 23 industry groups covered under the data have witnessed negative growth in December.
The Index of Industrial Production (IIP) for India for the month of December 2019, has shown another month of disappointment for the Indian economy. As per the quick estimates the IIP with base 2011-12 for the month of December 2019 stands at 133.5, which was 0.3 percent lower as compared to the same period last year.
The result once again shows a drop in production on the back of subdued demand across sectors. In fact, 16 of the 23 industry groups covered under the data have witnessed negative growth in December. Furthermore looking at the data for the Motor vehicles, trailers and semi-trailers industry, the decline was at 12.1 percent.
What could be worrisome is that the domestic automotive industry already reeling under the pressure of slowdown, as well as the upcoming transition towards BS VI emission norms from April 2020, which is expected to continue to put pressure on the retail sales. And with the recent outbreak of the ongoing novel Corona virus, the Indian automotive industry could potentially hamper the industry manufacturing output.
RELATED ARTICLES
Uniproducts India targets 15% growth till FY2027, eyes new EV OEMs for NVH parts
The Noida-headquartered company, which is a leading manufacturer of roof liners, floor carpets, sound insulation materia...
Ford to build more EV software capability at Chennai tech hub
Ford Business Solutions India, which currently employs 12,000 personnel set to add 3,000 more; Ford, which is known to b...
ASK Automotive to set up JV with Aisin to sell aftermarket parts for cars
Ask Automotive will have 51% of the equity of the joint venture to be set up with Aisin Asia (Thailand) Company and Aisi...