The Slow-Down begins 😱
Earlier this week, top Automobile companies reported that the Indian industry has witnessed a decline of 18.5% in total passenger vehicle sales (year on year) and this situation may worsen in the short term.
Analysts believe that consumer sentiments have stayed low primarily due to the economic slowdown, higher GST rates and a major liquidity crunch in the market which has tremendously impacted credit-based purchases.
1 in 5 auto-workers may lose their jobs
The Automotive Component Manufacturers Association of India (ACMA) has warned that theslowdown may result in the unemployment of 10 lakh workers (out of a total 50 lakh auto-workers) this year.
Anant Aggarwal, Director of Viney Corp (a prominent auto-part manufacturer) told us that it is the first time in the history of Indian markets wherein automotive demand has fallen by such a huge margin and companies have been forced to take strict measures to stay afloat.
Not the right time to prioritize EV’s 🧠
The auto industry produces almost half of India’s total manufacturing output and thereby, it is a reliable estimate of the health of the economy. The fall in demand and resulting unemployment will make matters worse for the newly elected government which is prioritizing the transition to Electric vehicles in a time when demand is low, manufacturer’s aren’t ready and infrastructure (for EV’s) is non-existent.