The Indian automobile market will always remember the last year. 2019 has been the worst year for the automotive market in terms of car sales. Be it passenger vehicles, heavy vehicles or medium commercial, all the vehicle segments have experienced a sales drop. The shift from BS4 to BS6 has made people give a second thought to their decision of buying a car in 2019. We have seen the car sales reports and they are definitely not impressive.
The Society of Indian Automobile Manufacturers released the CY sales numbers 2019. If we have a closer look at the numbers, we can see that the stats for the car sales are all in red. No matter which segment you consider, a major drop is clearly visible. The industry has experienced a downfall if we compare the stats to 2018. This is the worst performance in the decade. Overall vehicle sales declined by nearly 13.77% in 2019.
The car sales passenger vehicle segment had a decline of 12.75% with a sale of 29,62,052 units; commercial vehicles reported a sale of 10,05,502 units which is a 15% fall as compared to 2018. Utility Vehicle segment saw a growth of 4.78%. The increasing demand for the SUV segment has resulted in this growth. On the other hand, the two-wheelers saw an increase in their price due to the ABS/CBS implementation.
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Further, the government is now working on the revival of the auto sector and boosting car sales. This is being done by introducing depreciation benefits, corporate tax reduction and a boost to infrastructure projects which has increased demand for tippers and goods carriers. The popular demand for cutting the GST on vehicles still looks far from reality. The transition of the norms from BS4 to BS6 seems to be the biggest challenge that has affected the car sales and the overall growth of the Indian auto industry.
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December 2019 proved to be a month of relief as the decline in sales finally saw improvement. The sales decline slowed down last month and we can hope for a better 2020 for this industry. The government plans to make the roads and other infrastructure better really soon. The automakers have started rolling out the BS6 lineup but they seem to be costlier than the already existing models. Price is still a challenge that can arrest the car sales improvement. Let’s see what the future has on cards for us!
Car sales can be revived if the government agrees on the GST revision. They will have to support the masses in order to let the market survive. What are your thoughts on this?