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.

Automobile Sector Recorded Massive Dip In Sales Due To Demonetisation

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.

Automobile Sector Recorded Massive Dip In Sales Due To Demonetisation

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

Automobile Sector Recorded Massive Dip In Sales Due To 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."

Automobile Sector Recorded Massive Dip In Sales Due To Demonetisation

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.

Automobile Sector Recorded Massive Dip In Sales Due To Demonetisation

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."

Automobile Sector Recorded Massive Dip In Sales Due To Demonetisation

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.

Automobile Sector Recorded Massive Dip In Sales Due To Demonetisation

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Story first published: Monday, November 28, 2016, 12:58 [IST]
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