Not only farmers, even the Indian automobile industry is waiting for heavy rains this year. Know why

Farmers in India are hopeful for good rains this year, given that the last two monsoons weren’t effective, leading to poor crops and droughts in various parts of the country. However, there is another industry, the Indian automakers, which is looking forward to heavy monsoons this year, so that demand of the new models continues to rise. These new models have attracted people despite the fact that the future of diesel-powered vehicles in the Indian domestic market is uncertain.

Good rains would mean that sales would pick up further momentum as buyer sentiments would bloom in the coming months.

India’s biggest auto maker Maruti Suzuki reported that it has seen a 10.6% rise in its domestic sales in the past month, because of high demand for recently launched Baleno and Vitara Brezza. However, the demand for older and smaller cars, like Alto and WagonR, has seen a dip.

On the other hand, Hyundai also saw rise in the demand of Grand i10, Elite i20 and Creta, reporting an increase of 10.4% over the year earlier period.

Mahindra & Mahindra, the makers of top utility vehicles, have seen a rise in sales because of TUV300 and KUV100, posting over 8% rise in its sales.

However, one condition on which the monsoon sales depend is the regulatory intervention, which needs to settle at the earliest so that the auto industry can get a stable environment to work in. Since December, the auto industry has been facing a ban on the registration of diesel vehicles with engines displacing 2000 cc and higher in the National Capital Region.

While the automakers wait for this ban to be lifted, the National Green Tribunal is considering that 11 more cities should have a similar ban, which will be decided in a hearing scheduled for July.

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