Can Sales Drop in the Automobile Industry Prove Beneficial for Consumers?
The automobile industry in India is one of the biggest investors in the GDP of the nation. India is also considered among the humongous consumers of automobiles all over the world, but 2019 has struck the automotive industry like an invisible lightning. The sales figures in the year are said to be the worst in almost two decades.
Automotive in India is not a mere mode of transportation but it also decides the status and standard of living. The country, while facing the biggest drop in automobile sales in history, has brought several big companies on their knees too. Almost every brand available in India has been affected by sales drying up, but the reason for this downfall is not yet clear.
If we talk about July, it is being called the worst month in the entire year and here is some statistical data that clearly shows that even the big shots of this industry are facing the heat.
It is visible that brands like Maruti Suzuki, Mahindra, Hyundai, Tata, have faced a massive downfall in July, while Volkswagen raised their sales by the slightest percentage of 1.4. Though the downfall of sales cannot be constituted on a single reason, most of the brands lay the blame on certain policies by the government.
We all understand that the Government of India came up with policies for the automotive industry, many think it as a jump which did not land silently on the automotive industry. But, there is not just a single reason for any loss and policies established can be said to be a part of this loss.
Talking about the policies for the automotive industry, Budget 2019 displayed a series of changes that involve the Bharat Standard Emission norms and fuel injection technology. With the introduction of the budget, it is clear that the country won’t be allowing any BS-IV compliant vehicles on the roads from April 2020. It has also driven major support towards the electric vehicles by offering several subsidies aiming towards a pollution-free future.
The policies introduced by the government are worthwhile without any question, but are the brands of the industry ready to accept them and will they be able to deliver the outcomes as per the standards set in the policies?
This question will remain unanswered until the industry reaches its deadline but several companies have already started working to meet the policy deadline. Brands like Hyundai, Tata, and Mahindra have already introduced their electric vehicles in the Indian market and the country has also witnessed the entry of some new global companies this year. As far as the existing brands are concerned, they need to figure out a way to deal with the crisis soon to maintain their name in the competition.
The game plan of any brand has not been brought to light so far, but as the automotive industry in India has started offering discounts on the purchase of passenger as well as commercial vehicles, provides surety of one thing, whatever game plan they come up with, it will benefit the consumers of the country on a whole new level. As per the recent reports, the year 2019 has brought season of discounts whether it is the market leader Maruti Suzuki or the luxury maker Jaguar Land Rover. The offers are said to be more than 20-25% as the companies are struggling to correct the inventory.
Overall, if we look at the conditions faced by the automotive industry, it can be said that the employment sector in the automobile industry is going through a rough phase but if you are a consumer and you were waiting for an opportunity to purchase the vehicle of your dream, just wait for the right moment.
Sarthak Moghe is a young, enthusiastic writer who loves modern technology and automobiles. After completing his graduation in Journalism and Mass-Communication, he stepped into the world of adulting as a content writer. When not busy on the keyboard, he likes to explore new topics and hone his sense of humour.