For the longest time, everyone has been concerned regarding the effects of the slowdown, that has adversely impacted the automotive sector in India. Particularly where the past quarter is concerned, there’s been no dearth in the woes faced by the private as well as the commercial car manufacturers.
But to that end, it’s important to highlight just how serious is the hit received by the auto sector, hence underlining the auto sector slowdown!
The automakers in India have been in a tight spot ever since the news regarding the world sliding gradually into a state of a slowdown began to take shape. On top of that, what’s most concerning is that despite the festive push, with offers and enticements being floated like free sweets, there hasn’t been any significant improvement in the sales of both private and commercial vehicles to register anything sizeable.
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There’s pressure everywhere and it’s not easy to avoid it. To that end, here’s what one needs to know:
Continuing its downward spiral for consecutive 11th month, passenger vehicle sales plunged by 23.69 percent in September, as per the latest data from SAIM (Society of Indian Automobile Manufacturers). The report says commercial vehicle sales dipped 62.11 percent in September. Passenger vehicle sales dropped to 2,23,317 units, while passenger car sales dropped by 33.4 percent to 131,281 units.
In addition to the above, it is worthwhile to also note that the month of September wasn’t any positive either. But why was that?
Owing to uncertainty over the potential cut in the GST rate for cars, a lot of customers maintained distance from the new car purchase. In times of such economic duress, facing an additional confusion spiralled things further out of control, hence increasing the woes of the carmakers.
Business Today noted some key highlights through some number-crunching:
All major carmakers saw a high double-digit decline in September. Maruti Suzuki saw a 27 percent drop while arch-rival Hyundai registered a 14.8 percent drop. Tata Motors witnessed the heaviest drop at 56 percent followed by Nissan at 55.6 percent, Honda at 37 percent, Ford at 32.5 percent and Mahindra at 28 percent.
On the other hand, the used car industry continues to grow with and this festive season there is a high chance of the people selling their old cars to buy new ones.
What remains to be seen is whether the country can form a unifying strategy to push the automotive space out of the conflict it currently finds itself in. Maybe the coming times will require something inventive and “out of the box” from one of the most buzzing sectors in the country if the situation is to truly improve.
Until then, the auto sector slowdown will keep on adding to everyone’s woes.