December month appeared as a mammoth loss for automobile industry as the industry lost its sales first time in last 16 years. They are suspecting it as possible outcome of demonetisation. Post demonetisation, consumers have delayed their car, bikes and trucks purchases.
As per the reports, the two-wheeler sales faced a downfall of 22 percent in the month of December, 2016 on contrary to December, 2015.
Scooters and motorcycles make the 75 percent of the sum of vehicle sale.
Vishnu Mathur, director general of SIAM mentioned, “Almost half of two-wheelers sales comes from rural markets, which have been hit hard by demonetisation”.
Despite the grimness of the auto sales, the survey also says that 69 percent of the businessmen are going through financial difficulties between December 30 and January 3.
Most affected sectors are construction and roadside trade which got the severe effect of the demonetisation. A sum of 175 responses were analysed, out of which 40 percent belong to Mumbai and left out 60 per cent belong to Pune.
Apart from this, housing market is also not completely deprived of the doom state. As during October-December quarter of 2016, the sales slipped down to 44 percent in total 8 cities.
The Delhi-NCR market faced a hard hit with sales volume with a giant drop of 53 per cent. Also, housing sales came to a halt by falling to 40,963 units in eight cities in the months of October-December 2016.
Mathur also added that, “This is the highest decline across all categories since December 2000, when there was a drop of 21.81 per cent in sales. The reason is largely due to the negative consumer sentiment in the market due to demonetisation”.
The domestic sales of the cars came to halt after 1,58,617 units during last month as against 1,72,671 in December of the last year.
