India Auto sales crash |
Hit by a slowing economy, credit crunch and rising unemployment across major cities of India, auto sector sales in April-June declined the most in last 41 quarters, since the global economic meltdown in the second half of 2008-09. India`s auto industry, which is in the red across categories of passenger vehicles, two-wheelers, commercial vehicles and three-wheelers, is calling it an “unprecedented crisis” and said job losses have started as companies cut production and new investments. Weak rural market has added to the problem. Earlier, rural India had generally remained insulated from the woes of the economy and helped the industry sail through, when larger cities struggled. For high volume categories such as two- and three-wheelers, rural segment accounts for nearly 50% of sales. According to reports, automobile sales across various categories slipped by 12% in April-June 2019-20 quarter, witnessing the biggest fall since 17% decline in the third quarter of 2008-09.
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