Cash crunch due to demonetisation has hit auto industry hard as automobile sales growth rate slipped to a 16-year-low in December with total vehicle sales declining by 18.66 per cent and now it is pinning hopes on the upcoming Budget to boost consumer sentiments and looking for concrete incentives to promote fleet modernisation as well as electric vehicles.
As per Society of Indian Automobile Manufacturers (SIAM) data, segments like scooters, motorcycles and cars witnessed record decline in December sales as the automobile sector continued to bear the brunt of negative consumer sentiments.
“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 sentiments in the market due to demonetisation,” SIAM Director General Vishnu Mathur told reporters.