Vehicle sales hit 10-year low

The auto industry's sluggishness continues. Data released by the Society of Indian Automobile Manufacturers shows that total vehicle sales have hit a ten-year low, falling by 16% to about 20 lakh units in April. Volumes were down across vehicle categories, including cars (20%), passenger vehicles (17%), scooters (26%), motorcycles (12%) and SUVs (7%). The reasons range from the ongoing general elections to the emergence of shared mobility in cities. The auto dealers lobby has halved its inventory recommendation, advising showrooms to hold stock for only 21 days. 

Indian automobile market has been showing declining trends and softening of consumer demand. Recently, India's largest car manufacturer sensitised its Dealers of tough times ahead and now signs started to reach alarming levels. We have seen some increasing push towards Electric Vehicles but, the question remains-is it the product offering which needs innovation (mind the already extremely competitive market) or these are signs of macro level slowdown?

Sluggishness in Auto sector is serious but true analysis is needed why is lowest sale in one decade? Is it due to BS norms? Is it due to election? Or some international reason? But one thing is sure-market is becoming vulnerable... Hence small players should be more careful because big players will be protected by government... You have to protect yourself!!