By Diya Barmecha

Since March 2018, India’s passenger vehicle industry has suffered its worst performance in sales in 19 years. The industry has been at an 8% loss ever since. There has been no profit since March 2018. According to SIAM ( Society of Indian Automobile Manufacturers), car sales have the worst sales performance, averaging a 35% decline from December 2000. A tally taken in 2018 shows the production of units itself has shrunk from 290,931 units yearly to around  200,790 units yearly. 

ince March 2018, India’s passenger vehicle industry has suffered its worst performance in sales in 19 years. The industry has been at an 8% loss ever since. There has been no profit since March 2018. According to SIAM ( Society of Indian Automobile Manufacturers), car sales have the worst sales performance, averaging a 35% decline from December 2000. A tally taken in 2018 shows the production of units itself has shrunk from 290,931 units yearly to around  200,790 units yearly. 

The Automotive Component Manufacturers Association of India has given a statement saying that nearly a million jobs could be lost if losses like these continue. This is the ninth straight drop on car sales. SIAM warned many car manufacturers about this damage and some only release wholesalers or factory dispatches instead of retail sales. Measures like these are taken in a country like India in which the passenger vehicle usage is more than the USA. News models like  Mahindra and Mahindra Ltd XUV300, Hyundai Motor India Ltd’s Venue and MG Motor India Ltd’s Hector models are barely running. If the same cars were to release two years ago, the market would be going wild trying to purchase this car. Seeing results like this, Maruti Suzuki India Ltd is contemplating whether or not diesel vehicles should be discontinued from the coming April.

 Reserve bank of India has cut India;s projection of September from 7% to 6.8% and plans to decrease it further to make it more achievable. The severe flooding in states such as Kerala, Karnataka and Maharashtra is also impacting the vast sum of money the business should be receiving. Prime Minister, Narendra Modi’s demonetization plan affected the sales of the industry as many buyers bought cars with black money. While taking this into account, second-hand cars are selling more and the sales of uber and ola are rising. Metro projects all around the world are also affecting this industry. In a few years, the industry would be smaller than public transportation. 

With the improvements made of public transport, life is getting easier and the need for owning a car is not as much as earlier. Government of India is inaugurating Bharat Stage VI. This program will increase the price of safety norms like airbags. Which will probably help the sudden change of pace in the country. If we continue like this India  will be “greener” and carbon emissions will decrease.

Diya Barmecha is a current ninth-grader who loves to inspire. She loves to read and discover new genres of books. She enjoys reading news articles when they concern her interests. She hopes to find a medium of expression by the Ascent.

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