Auto Sales In India Has Finally Picked Up, Thanks To Diwali And Discounts
The Indian auto industry which has been on a downward spiral for nearly a year has finally got some good news. On Dhanteras which is considered an auspicious day the automobile sales especially of passenger vehicles showed a positive trend. MG Motor India announced that it has delivered a record 700 units of its SUV Hector on the auspicious occasion.
The Indian auto industry which has been on a downward spiral for nearly a year has finally got some good news.
On Dhanteras, which is considered an auspicious day the automobile sales, especially of passenger vehicles, showed a positive trend.
BCCL
The trend is said to be aided by deep discounts and recent government schemes.
"In terms of passenger vehicle sales, we have witnessed a similar off-take pattern to last year's Dhanteras day," Vinkesh Gulati, Vice President of the Federation of Automobile Dealers Associations (FADA) told IANS.
BCCL
On Friday, MG Motor India announced that it has delivered a record 700 units of its SUV Hector on the auspicious occasion.
The company has bucked the slowdown trend with its first offering Hector. It has received over 38,000 bookings.
However, the Confederation of All India Traders' Secretary General Praveen Khandelwal said: "Vehicles sales have been hampered to a great extent and I believe like other sectors of trade, the automobile sector is also witnessing a decline between 25 to 30 per cent."
"The consumer is suffering from a cash crunch and banks have also tightened financing of vehicles. Moreover, since only BSVI vehicles will be allowed from April 2020, it is making consumers reluctant in purchasing vehicles currently which are of BSIV standards."
BCCL
The festive day, which forms a part of the Diwali festival, is considered to be auspicious to buy gold, silver, automobiles, and utensils in order to bring luck.
But, the general slowdown which has plagued the economy for a while now, has dented the automobile sector hard, with sales plunging on a year-on-year basis.
In the past few months, several automobile manufacturers had scaled down their production to deal with the slow down.
BCCL
Thousands of people at various levels also lost their jobs due to the scaling down, which forced the government to step in and announce a reduction in the corporate tax rate to boost manufacturing and lift growth.
Car companies such as Maruti Suzuki India Ltd have lowered prices on some models in an effort to boost sales.
Bobins Abraham is the Assistant News Editor at Indiatimes. He has more than twelve years of experience in TV and digital journalism. An avid student of history and geopolitics, he is a conservationist and environmentalist at heart. He writes on environment, sustainability, human-animal conflict and more.
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