Why Automobile Sales Down In India ?







why automobile sales down  in India ?

From last few months, we can see that automobile sales are declining.  Companies are shutting down their plants. Some other companies suspended their production for number of days every month.
 Automobile manufacturers are compelled to cut down their production. What happened to automobile industry?

It’s also the same condition in the sales of commercial vehicles and passenger vehicles. There is a huge fall in the demand of commercial vehicles.

Let’s check the reasons for this-

Switching to electric vehicles
Customers are moving to electric vehicles. And most of the vehicle manufacturers are not producing the electric vehicles. 
And they just entered to this segment. And customers are still in confusion about purchasing a fuel vehicle or an electric.
 They also eagerly watching the changes in rules and regulations and have influence in their purchasing decision on vehicles.

Another fact is that, existing automobile manufacturers are just launched their electric models and they still expects huge sales in diesel and petrol vehicles.

Income of the consumers
Income of the customers is also affecting their purchasing decisions. If you are planning to buy a car, it depends on your income.

 If your income and price of the car mismatches, you can’t purchase it.so finance is also a problem.


Price of fuel


We can see that fuel price is not affordable than before. If the price of the product increases, the consumption also decreases.

So if a person who travelling in a car daily, will change his vehicle to a two wheeler or to a public transport system. 

It will reduce the pollution and saves travelling cost. But it will affect the automobile industries badly.

 And price hike of fuel affects the demand of vehicles also.

But this situation can be solved by electric vehicles. It is energy efficient and it will travel an average of 200 kilometres on single charge.

 And most of the automobile manufacturers launched their passenger/ commercial vehicles in electric.

Mass production

Automobile manufacturers continued production without checking the demand of the customers. 

They continued the mass production of vehicles, due to low demand- sales declined. Mass production resulted in huge loss to automobile sector.

 Lack of proper market analysis, they reached this situation. 

They are trying to survive by giving more offers to vehicles. And they are compelled to produce according to demand.


What happened to commercial vehicles?




Commercial vehicle sales also declined according to latest reports. There are different factors which declined the sales. Let’s check it.

Availability of drivers

Availability of drivers is the major problem affecting the commercial vehicle sales. If one entrepreneur interested to start a transport company, he need good, experienced drivers. 

But no one is opting driver job and chasing white collar jobs. So due to the shortage of good drivers, no one is ready to invest in transport sector. 

And services cost, spare parts cost, cost of fuel also affecting the transport sector.

 And profit from transport sector is declining and no one is interested to invest on this. It affects the sales of commercial vehicles.

Sales of multi-axle vehicles

Sales of multi axle vehicles reduced the number of sales of commercial vehicles. Multi axle vehicles can replace 2-3 commercial vehicles by its high loading capacity in the case of trucks.

 So the number of sales, of commercial vehicles will automatically decrease. It reduces the number of drivers, low maintenance cost for lesser number of vehicles and also reduction in consumption of fuel.


Automobile manufacturers introduced their electric commercial vehicles to increase sales. It will also affect the sales of commercial vehicles which run on diesel.


The sales decline of automobile industry will affect the spare parts manufacturers and other dependent industries.


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