Apart from the informal labour sector, if one industry is hit hard it must be the automobile sector. According to the latest data published by the Society of Indian Automobile Manufactures (SIAM), the December sales in domestic market stood at 1,221,929 units, 18.66% lower than December 2015 while exports suffered negative sales of 3.12%.
Small commercial utility vehicle remains the only segment to register growth at snail paced 1.15% at 31,178 units. The two-wheeler segment saw its biggest dip with 22.04% to 9,10,235 units since SIAM started collecting data in 1997. Rural India contributes to half of two-wheeler sales, which have been hit hard resulting to a record dip.
Vishnu Mathur, director general, SIAM, told reporters, “This is the highest decline across all categories since December 2000 when there was a drop of 21.81 percent in sales. The reason is largely due to the negative consumer sentiment in the market due to demonetisation.”
Domestic car sales also tanked down by 8.14% to 1,58,617 as against 1,72,671 units recorded last year at the same time, while ales of commercial vehicles were down 5.06 per cent at 53,966 units in December 2016.
This December witnessed the largest discounts on domestic sales but still failed to inspire buyers. The budget to be presented remains the only hope which could bring back buyers if some incentives are announced as a good monsoon and 7th pay commission pay rise have failed to wield magic.