Auto sector battery down due to these reasons, it may take a long time to improve the situation

Auto sector battery down.

Market leader Maruti has suffered due to impact on the sales of small vehicles. In FY19, Maruti’s share in the car market was more than 51 percent, which came down to about 43 percent in 2022.

After the blind turn of Kovid, the face of the car market changed recently. The number of small cars on the roads began to decrease. Big cars were filling up. The matter is not very old, it was only the year 2018-19. car market ,Car MarketThe share of small cars used to be 26 per cent. Which came down to 10 percent last year. Yes, only 10 percent. Small car means which comes within 5 lakh rupees. Who were their customers? Hey those people who dream of riding a car are riding on a motorcycle. The wait was just to get the bonus for the down payment or to ripen the FD. Kovid broke the hope of buying a car, not just his earnings. They will now return only when the fear of Kovid’s waves ends. The hope of keeping the job going will be tied and the backbreaking inflation will give a chance to straighten up.

Cars costlier due to war in Russia-Ukraine

This Delhi is far away. The distance of this Delhi was further increased by the rising prices of cars. The rise in the prices of base metals and crude oil due to the Russia-Ukraine War increased input costs for auto companies. Because of this, companies increased the prices of cars.

The country’s largest company Maruti has increased the prices thrice this year. Between January 2021 and March 2022, the company’s cars have become expensive by 8.8 percent. In the story of the car market, Kovid was the peak of the crisis. The troubles started even before Corona.

A total of 27,73,519 cars were sold in the year 2019-20. This figure was 33,77,389 in 2018-19, that is, the consumer’s confidence was already fluctuating before Kovid, but the government was denying this slowdown by hiding under the guise of Ola-Uber. The story is not over yet. See the latest situation with your eyes and listen.

waiting period extended

Waiting boards for weeks are hanging at the car showroom. There is a one and a half year waiting period for the XUV700. On Kia Carens, for a year, those who buy Thar will have to wait for 8 months and those who buy Creta will have to wait for 9 months.

Everywhere the reason is the same. Due to chip shortage, production is not being done at full capacity. It will take about a year for the situation to improve. The demand for small vehicles is still less. The demand for vehicles above Rs 10 lakh is good. The market share of this segment has increased from 5 per cent to 11 per cent in the last two years.

Tata Motors is beating Hyundai in this segment. At the top is Tata’s Nexon, out of the 5 best selling cars, two are from Tata. First Nexon and second Punch, Venue and Creta are the laggards in the market. Market leader Maruti has suffered due to impact on the sales of small vehicles. In FY19, Maruti’s share in the car market was more than 51 percent, which came down to about 43 percent in 2022.

Understand the big thing in such a way that the number of people buying entry level cars is less. Those who have the capacity to buy a car above 10 lakhs are not getting cars, that is, the condition of the car market for the last 3 years is as if a person had an injury on his leg. He was walking slowly that the bone of the leg was broken.

Pawan Pandey, Money9

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