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.
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.
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.
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.
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.
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.
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.