As November drew to a close, India’s worst fears came startlingly true. Government data showed the economy had slipped further, with the July-September gross domestic product (GDP) growth slumping to 4.5 per cent, the seventh straight quarter of fall. And nowhere was this deceleration more apparent than in the country’s automobile industry. And justifiably so. After all, the auto sector contributes more than 6.5 per cent to the country’s GDP, and has strong backward linkages with supporting industries like rubber, plastic, auto-components and, of course, steel.
Beginning late last year, all segments including cars, two-wheelers or commercial vehicles have been consistently reporting dipping sales figures month after month. A fallout of this has been job losses at ancillary units and dealerships — 15,000 or more are out of work. There is a visible decline in passenger car sales every month (exception being October). Experts say the sector has virtually been set back by three-four years. Can it recover in 2020? Or will it take longer?
For the seven-month period ended October this fiscal, the car makers collectively have managed to sell 1.54 million units (15,48,486 units). In 2018-19, the car segment clocked total sales of 3.37 million units, the highest ever till date. Experts say if the average monthly sales for the remaining five months (till March 31, 2020) is around 200,000 units, then for FY 20, we will be staring at an estimated total sales of less than 2.6 million units, something the industry achieved in FY15.
To make matters worse, the next four to five months are also expected to be very difficult due to the transition from BS IV to BS VI emission norms. What can the car makers do to reverse the decline? What can the consumers expect in 2020?
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Is Leadership Without Hierarchies Possible?
LEADERSHIP IN THE current era is more challenging than ever before.
The Rise and Evolution of Coffee Culture in India
AS A BANGALORE native, South Indian filter ‘Kaapi’ has always been a significant part of our tradition.
The Daily Ground Goes Desi
Success in Tier-2 and Tier-3 cities hinges on several key factors, with one of the most important being the ability to offer high-quality products at an accessible price point
Cracking The Indian Code
TARUN JAIN, CEO of Tim Hortons India believes in creating an experience at cafes by blending global quality, local flavours and affordability
Making Coffee the New Chai in India
Affordable, great-tasting coffee made fast-abCoffee is reshaping how India drinks coffee
Scripting A New Era Of Coffee In India
From a bootstrapped startup to international expansion, NOTHING BEFORE COFFEE is brewing its way to the top by challenging the giants of the coffee industry with innovation, personalisation, and sustainability
"Driven By A Younger Demographic, Coffee Culture Is On The Upswing"
SUNIL D'SOUZA, Managing Director and CEO of Tata Consumer Products, discusses the company's strategic growth in India's booming coffee market, focusing on premiumisation, innovation, and expanding consumer experiences both at home and in cafés, in this exclusive conversation with BW Businessworld's Tarannum Manjul
Fresh Brew, Big Ambitions
From startups to stores, Beanly's Samayesh Khanna and Rahul Jain elevate India's coffee culture by making freshly brewed coffee a daily delight
"On Track To Become India's Top Café Chain"
In an exclusive interview, RAJAT AGRAWAL, CEO of Barista Coffee, shared insights on the company's current market position, expansion strategies, and its response to growing competition
"Ensuring A Seamless Coffee Experience Outside The Cafe Is The Next Big Thing To Watch Out For"
In an exclusive conversation with BW Businessworld's Resham Suhail, Third Wave Coffee CEO RAJAT LUTHRA and its Co-founder AYUSH BATHWAL delve on how they are navigating the competitive landscape, going beyond retail and tapping changing consumer preferences