In fact, if you were to look at any of the major auto companies that have reported monthly numbers for April; be it Maruti or TVS or Hero Moto or Tata Motors, the fall in sales has been really sharp in all these cases. The reasons for this are manifold. Firstly, most auto purchases are being postponed till the election outcome and that has dented the short term demand for these vehicles.

Secondly, the high price of petrol and diesel is also making buyers to postpone their decision to buy automobiles at this point of time. Last, but not the l east, funding is a major issue. The NBFC crisis that started in September 2018 has led to tightening of the auto funding market as well as higher cost of loans. Both are not positive as the economics are not working out for most auto buyers. Dealers across India are complaining of piling of inventory and weak sales and that is taking its toll on auto company numbers this April.

(Source: Google images)