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Auto Industry In Reverse Gear At The Moment As Sales Touch Five-Year Low
Representative image. (Raj K Raj/Hindustan Times via Getty Images)
Rising fuel costs and higher upfront insurance costs have contributed to the lowest auto festive sales in the last five years, reports BloombergQuint.
“The entire auto industry has seen a 20 per cent year-on-year drop in overall demand during the October-November festive season. Two-wheelers and passenger cars were the worst-hit segments as customer enquiries didn’t convert into sales,” Saharsh Damani, Chief Executive Officer (CEO) of Federation of Automobile Dealers Association, an industry body.
According to the new Supreme Court ruling, customers making car purchases after 1 September will have to buy a three-year third-party insurance policy mandatorily. Also, a portion of the same will have to be upfront in the first year itself. On the other hand, two-wheelers will come with a five-year insurance policy. A percentage of Indians have the habit of not renewing their vehicle insurance policies after the first year, leading to a compromise in safety norms.
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