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Big jolt to the automobile sector, the biggest drop in the sales in 18 years

Thursday - June 13, 2019 2:31 pm , Category : BUSINESS
A record decreasing seen in car sales!
A record decreasing seen in car sales!

Know why the automobile sector hit by recession?

JUNE 13 (WTN) - Due to the emerging high middle class in the new century, India's automobile sector has seen significant improvement and development since 2000. In India, the newly rich class purchased fiercely passenger cars during this period, which saw a boom in the automobile sector of India. Due to the strong growth in the automobile sector, many foreign companies also stepped in and earned profits in India.

But it is said that every time is not same. There was a time when there was no delivery of passenger vehicle after the booking, but today the condition is that the customers are not getting in to the showrooms for passenger vehicles. These days, there is a huge decline in the demand for passenger vehicle in the Indian automobile sector.

For your information, let you know that in India, there is a record level decrease in sales of passenger vehicles. These days there is a silence on the dealers' showroom due to low sales of passenger vehicles. According to information received from the media, strong decline in sales of passengers vehicles have been recorded. In the month of May, only 2,39,347 cars were sold in India i.e. a decline of 20.55 per cent in sales of cars recorded. This is the biggest decline in car sales in the last 18 years. In September 2001, there was a decrease of 21.91 per cent in the sales of passenger vehicles.

The trend of concern and contemplation continues in the automobile sector on low sales of cars. It is being said that cars have been kept at 28 per cent of GST slab which is the highest, due to which the cost of car companies is increasing. In such cases, companies have increased the prices of cars, whose impact is on sale of cars.

People associated with the automobile sector say that due to the high GST rate, there is a negative impact on sales of cars. The automobile sector demanded that the rate of GST on all types of vehicles should be reduced from 28 per cent to 18 per cent. The sector is demanding that the government should make a vehicle scrappage policy. With this, the market will be available smoothly for new vehicles.

As we told you that there is a heavy recession in the sales in the passenger vehicles. Due to this many companies such as Maruti Suzuki, Mahindra and Tata Motors have stopped production to clear their previous production stock. Honda, Renault-Nissan and Skoda Auto are also preparing to close their production for 10 days. For your information, let you know that there has been a huge decrease in the demand for passenger’s vehicles in India for the last 7 months. With fewer sales of cars, the companies have unsold cars worth around Rs 35,000 crores.

Well there are many reasons behind the low sales of cars. Once upon a time the newly rich class bought cars fiercely in the country. But now the purchase is not getting so fast, because now there is stability in the purchase of cars in the country. At the same time due to five years compulsory insurance and hike in the prices of petrol-diesel, sales of cars have been declined. Not only that, nowadays cars customers are showing more interest in buying old cars, because they are getting cars at a lower price. Here are the reasons why the decline in sales of cars is seen in these days.

Automobile sector also has considerable contribution in country's GDP. If there is a negative impact on this sector, its impact will also be seen on the GDP. If there is a decline in the automobile sector, then this sector will increase the risk of getting jobs for lakhs of people, which can be a cause for concern for the Modi Government. Now it is necessary to see how much Modi Government works on the demands of the automobile sector so that it can get momentum again and the improvements in the automobile sector continue for months.

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