Published Paper Details:

Rising economic uncertainties, reduction in fresh investment and coming under pressure from non-banking lenders have resulted in a significant reduction in demand in Indian automobile sector from both urban and rural consumers. Due to low demand in the market, the top passenger vehicle manufacturers are facing a big crisis. The increase in the cost of vehicle insurance last year and the credit crunch also forced many consumers to postpone their plans to buy a vehicle. All these factors have made a bad impact on the automobile industry. Two-wheeler sales continued to decline for the sixth consecutive month due to rising cost of ownership, low rural sales and tight liquidity. Obviously, low liquidity, low consumption and rising costs due to stricter standards have resulted in a decline in vehicle sales. In the first quarter of the financial year 2019-20, there was a decrease of 23 percent in car sales and 18 percent in passenger vehicle sales. The crisis may increase due to increase in registration fee. Industry organization, Society of Indian Automobile Manufacturers (SIAM) says that the proposal to increase the registration fee on new vehicles by 10 to 20 times may further increase the crisis of the domestic automobile industry. In the first half of this year i.e. from January to June, car purchases have been low in all the major car markets of the world. The only exception in this case was Brazil, whose car sales registered an increase of 11 percent. At the same time, there was no significant movement in the Japanese car market during this period, while the American and Russian car markets registered a decline of two percent. At the same time, China remained the world's largest new car market despite a 14 percent decline.