Automobile Sector Recorded Massive Dip In Sales Due To Demonetisation

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The decision of scrapping the Rs 500 and Rs 1000 notes by Government of India has badly impacted the automobile sector in Hyderabad. Several dealers have reported 50 percent dip in sales.

Demonetisation has badly impacted the automotive sector as footfalls in the showrooms drops from past 15 days. Cars and two-wheeler sales have witnessed a massive dip in sales in the city.

Officials from many dealerships have stated that the mid-sized cars and small cars have been badly affected by demonetisation.

Managing Director of Renault dealership in Hyderabad, R Jagdeesh said, "There have been transactional delays on account of demonetisation. Banks have been delaying clearing of loans due to which vehicle deliveries have got affected."

Although leading manufacturers such as Maruti Suzuki and Hyundai have not reported a drop in production, but stated that there was a delay in new vehicle registration and down payment for cars.

A dealer for Maruti Suzuki in Hyderabad said, "Post-demonetisation, the number enquiries for down payment options have dropped considerably. Also those buying new cars are not opting for accessories due to ongoing cash crunch."

The demonetisation also impacted on the two-wheeler sales. As the majority of two wheeler sales is cash driven, there has been a noticeable drop in sales in the city.

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