The Indian Automobile Industry saw a major plunge in automobile and vehicle sales since the past 12 years. The figures have been continually dropping heavily and were nearly 26% last year. The Indian Automobile Industry has never seen this kind of an economic plunge before, and has heavily affected the entire economy of the nation since the automobile industry is one of the major backbones responsible for a major portion of the economy of the country.
The overall economic health of the country and the economic state of the industry itself has been weakening for the past decade. Even though the industry saw a rise in sales in the 1990s, it has taken a substantial turn. The problem with the declining car sales can be traced back to the economic conditions of India itself. Potential buyers are now scared of the rising interest rates for loans and the burst in the prices of petrol and other petroleum products necessary for running their vehicles.
The spurred inflation and rising prices also can be traced as a cause for this downfall. The automobile industry is essential for the upliftment of the entire economy itself. All these problems in the existing economy has resulted in the once-booming passenger car market in India to decline. This declination has to be fixed – soon.
The sluggish Indian economy has completely crippled consumer demand in the past 12 years. Indian Automobile companies are continually trying to introduce new car concepts and target specific sections of consumers to ensure that their products keep selling. It is an integral part of the economic condition of the nation. Indian citizens are now scared of the rapidly declining economy and extremely high prices, and do not want to risk the investment involved in a personal car.
The Indian Government seems less than interested to tackle problems with such a declining economy. The Government must take initial steps in regaining control over the consumer automobile market to save the economy and stabilize sales of such an important industry. The revival of this industry is essential for the revival of a much bigger nation.