After having posted a phenomenal growth in 2017, the automotive industry looked poised for yet another brilliant year in the country. But amid cash crunch in the banking system a general slowdown in sales, India's car stocks have plummeted in the last 16 months. India's car stocks have lost 42 billion dollars in value during this period and the recovery won't be easy or fast. India has been touted as one of the world's fastest-growing auto market until last year. Passenger vehicle growth in the financial year ended March was the slowest since 2014, according to the Society of Indian Automobile Manufacturers. Last year the auto sector grew at 14 per cent and in 2018-19 it is down to 5 per cent and even auto dealership owners are looking to leave this business.
Last year the auto sector grew at 14 per cent and in 2018-19 it is down to 5 per cent
Speaking exclusively to NDTV Nitin Gadkari, Minister for Road Transport & Highways, answered saying, "The growth rate of the Auto Sector keeps on changing every month. Sometimes it will go to 22%, sometimes it will come down to 14%. It's all related to demand and supply and even export. From the Mumbai Port 2.78 lakh cars are exported. From the Tuticorin port 4.50 lakh cars are exported and this number keeps on changing every year. There are ups and downs in the global economy and that affects different sectors"
Sales of India's biggest carmaker Maruti Suzuki too have been affected. In fact the company recorded a slump of 19.6 per cent in volumes in April 2019 compared to the same period last year. Further complicating matters is the company's decision to do away with diesel powertrains as it gears up to tackle BS6 emission norms. Only two of the 16 companies on BSE Auto Index have held their heads above water this year. Tata Motors which rebounded last month after declining to its lowest level since 2011 in February. And Bajaj Auto which is up 11 percent amid an increase in its sales of two-and-three wheelers for the year ended March. While some say that the downslide is temporary, it's still a big jolt to industry which is one of the major contributors to the country's GDP.