Car Sales Decline In Major Indian Cities — Demand For App-Based Cab Services Increase

Car sales in India are on the decline in major metro cities. Cities like Bangalore, Mumbai and Chennai are witnessing a decline in demand for new cars, while other cities like Delhi and Pune manage just a two per cent increase.

Car Sales In India: Major Cities Like Mumbai, Bangalore, Chennai See Decline In Car Sales

According to sources from TOI, growing congestion and the increase in demand for app-based cab services such as Ola and Uber, have lowered the demand for new cars in the market.

In the fiscal year, 2017-18 demand for new cars has reduced by 20 per cent in Mumbai, 11 per cent in Bangalore and 4.5 per cent in Chennai. However, cities like Delhi and Pune have managed to grow, by just 2 per cent.

Car Sales In India: Major Cities Like Mumbai, Bangalore, Chennai See Decline In Car Sales

Reports also suggest that the demand for new cars in these markets has further reduced due to the fluctuating fuel prices. While insurance premiums and rising vehicle financial rates are also part of the reason for the low demand.

Car Sales In India: Major Cities Like Mumbai, Bangalore, Chennai See Decline In Car Sales

RS Kalsi, Senior Director, Maruti Suzuki Pvt Ltd said that the sales have been flat over the last two months. This is a worrying situation, as car sales are usually high during this period owing to the festive season.

Car Sales In India: Major Cities Like Mumbai, Bangalore, Chennai See Decline In Car Sales

He also mentioned that car sales in rural regions has grown by 12 - 13 per cent, while in urban areas sales are struggling at just two or three per cent growth. The projection for the last two months was to grow at double digits, however, the actual growth has been just half at around six per cent.

Car Sales In India: Major Cities Like Mumbai, Bangalore, Chennai See Decline In Car Sales

In a bid to offset low demand, many car manufacturers are offering heavy discounts on most of their models. Hyundai Motors India is one such brand, offering discounts of up to Rs 1 lakh. Other companies also include Jeep India, which is offering discounts on the popular Compass SUV.

Car Sales In India: Major Cities Like Mumbai, Bangalore, Chennai See Decline In Car Sales

Thoughts On The Decline Of Car Sales In India

Car Sales in India has been on the decline. People of major cities such as Chennai, Bangalore and Mumbai are preferring to make use of app-based cab services such as Ola and Uber for their daily city commute. This has given way for many car companies to offer heavy discounts on their products, in a bid to increase sales before the year-end.

 

English
Read more on: #auto news
Article Published On: Monday, November 26, 2018, 12:49 [IST]
X

Get Instant Auto Updates From DriveSpark

We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Drivespark sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Drivespark website. However, you can change your cookie settings at any time. Learn more