2019 Witnessed Worst-Ever Decline in Automobile Sector
The sales of the Automobile Sector declined 13 percent in every category with segments such as passengers’ cars, two-wheeler, and commercial vehicles.
On a yearly basis, the sales across all the counters have declined by around 14 percent to 2,30,73,438 units as against 2,67,58,787 in the previous year quarter.
According to the Society of Indian automobile manufacturers (SIAM), the problems will remain to continue even after the intervention by the Government of India by implementing several reforms recently.
During the transition of vehicles to BS-VI norms, the cost will escalate by 8-10 percent. The sales of Passenger Cars have declined by 8.40 percent on the year on year basis. The sales of commercial Vehicle segments also declined by 12.32 percent on-year on year basis. The two-wheeler segment declined by 12 percent on-year on year basis. As per the industry sources challenges will remain in the coming time, the rural demand has also slowed down which has become a matter of concern.