Current Downturn in the Auto Sector


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There has been a nose dive in sales of Vehicles, both two & four wheelers. Commercial vehicle sales are also down. 

Due to the sales numbers going down, there have been job layoffs across the Auto sector. 

Finance Ministry did introduce some measures recently but are they enough? 

Lets discuss why the nosedive in sales & how to put the sector back in the driving seat(solution).



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I think auto industry have themselves to blame for this downturn.

Just look at the price increase in last decade, a so called hatchback now cost a million bucks. When time was favorable auto industry used to keep increasing prices in the name of raw material cost, exchange rate and what not.

Though tax is high but that's not the sole reason for this mess.

Also, we should keep in mind  that owning and running a car has become a nightmare now, specially in big cities. When one can get Uber or Ola at competitive rates, who is going to bother taking out their own car.

Moreover, priorities for current generation have changed, they are more inclined to spend on their other needs or hobbies (like food, travelling etc) than to put their money into buying a house or car.


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Agreed, to a large extent the Auto Industry is itself to blame for the nosedive in sales. It encashed full profits while it way hay time & bloated itself out of control. Instead of offering economical mode of transport, prices were jacked up & stretched the budgets of middle class Indians.  

True service & repair prices were also made nightmarish. Common spare parts are priced to astronomical figures.  So the industry took full advantage of the boom.  Its now time to downsize & down-price by a significant margin & introduce greener/ecological solutions.

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  • 1 year later...

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