Why Indian automakers saw the worst festive season sales in November

  • Automakers in India reportedly witnessed the lowest festive season sales due to higher fuel prices and low consumer demand.
  • India’s auto industry reportedly saw a 20% year-on-year decline in overall demand during October and November.
  • Car and two-wheeler makers also had to raise prices because the falling rupee increased the price of the imported raw material.
All hopes of India’s auto industry to witness a surge in the festive season in November crashed when weak buyer sentiment and rising fuel prices led to the worst festive sales in last five years, BloombergQuint reported.

The entire auto industry suffered weak sales on the back of 20% year-on-year decline in the overall demand between October and November, said the report, citing Saharsh Damani, Chief Executive Officer of Federation of Automobile Dealers Association.

Even though the enquiries for two-wheelers and passenger cars by potential customers were high, they didn’t transform into sales, according to the report. Car and two-wheeler makers also had to raise prices because the falling rupee increased the customs duty imposed on auto raw materials.

The Indian currency shed 15% this year by sliding to an all-time low of 74.48 against the US dollar in October.

As a result, the industry saw a pile up in inventory, from a ‘healthy inventory level’ of 21 days to 45-50 days.

After weeks of tension, the Reserve Bank of India gives in to some of the central government's demands while retaining its independence

India may have a tough time meeting its solar energy capacity targets as developers steer clear of government auctions

India secures Japan’s help in saving the rupee by signing its largest currency swap agreement with the country ever
Add Comment()
Comments ()
Sort By:
Be the first one to comment.
We have sent you a verification email. This comment will be published once verification is done.