Car sales fell more in two decades in 2019
NEW DELHI: The Indian car industry concluded one of its most difficult periods in 2019 when car and SUV sales went into free fall, witnessing the biggest decline in more than two decades as uncertainties, difficult financing and The economic depression buyers despite the great discounts. Such had been the pressure that the numbers fell despite the entry of new brands such as Kia Motors and MG Motors, which surprisingly achieved a strong opening even in a difficult market.
According to the figures obtained from the industry, sales of passenger vehicles, an accumulation of cars, trucks and SUVs, fell below the 3 million psychological mark in 2019, after crossing the figure for the first time in 2017. The decrease It was led by leading brands that include Maruti Suzuki Hyundai Mahindra &mahindra,tatamotors,hondaand
The recipe for the slowdown has been in process since mid-2018, when the numbers really began to fall. The declines began to be deeper and sharper in the coming months and rather became more pronounced in 2019 as economic growth was under pressure and political uncertainties, in relation to national elections, began to grow. And, as liquidity pressures began to increase after the NBFC crisis and problems such as unemployment became severe, the industry began to collapse. The confusion surrounding migration to the BS6 emission regime since April 2020 of the existing BS4 was added to the puzzle.
It had been a difficult year, but now we look forward to the New Year with optimism, Shashank Srivastava, director (marketing and sales) of Maruti Suzuki , he told TOI. Maruti, who also points to the increase in vehicle prices as a depressive, was able to maintain his 50% market share, but feels that the industry remains cautiously optimistic. Srivastava said that reducing interest rates and better rural feelings can help the industry recover numbers.
Rajesh Goel, senior vice president and director of sales and marketing at Honda Cars India, said that although the difficult period may continue, the market seems to have bottomed out by now. “It can still take a few more quarters, at least until the holiday period later this year, to fully recover. However, we continue to trust.
Ravi Bhatia, president of India for the analyst firm JATO Dynamics, said that increasing congestion in the largest cities and the growing proportion of transport applications such as Ola and Uber also contributed to the decline.