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The sales of Automobiles in the country is plunging down and it is a major reason for worry! Why? Because the sales and production of automobiles decide the shape of our economy. As the sales are going low, even the production is down. Hence, the people working in the automobile sector are losing their jobs.
What are the factors responsible for Automobile selling going low?
The decline in the selling of vehicles started way back in the year of 2018. In that year, the selling of vehicles went down by almost 8%. As per the manufacturing companies, the slowdown in the market is due to the following reasons:
- Purchasing power of people has gone down due to Demonetization. Demonetization is having a long term impact on the economy and market is still trying to recover from that.
- People are preferring second-hand vehicles over new ones because they are available at a cheaper cost.
- Rural distress is also one of the major reasons for the slowdown. People in the village are not able to make enough from their yield. Hence, the purchasing power of people from that sector is also negligible.
- Even inventory plays a role in this issue. The inventory of a four-wheeler is just for a month. Whereas, that of a two-wheeler is two months.
Condition of some of the leading Automobile Companies
- Tata Motors sales down 34%
- Here MotoCorp sales down 21.2%
- Eicher Motors sales down 22%
- TVS Motors sales down 13%
- Ashok Leyland sales down 28%
- Escorts sales down 13%
As per the predictions from Market Research companies, the same scenario will continue in the near future. We hope that it ends very soon. Otherwise, the unemployment rate will increase farther.