The record slowdown in car sales has been centered on the hypothesis that this is one of the obvious consequences of a severe economic slowdown. Auto sector has expressed that consumer confidence in the industry has taken a hit like in most other sectors in recent months.
The measures are important in the present context but it is also important to remember that it’s time auto companies to wake up and see the changes on the changing market reality to diminish the crisis.
Prices have gone up even for the entry-level cars over the years. If the carmakers show the willingness to cut prices demand can be revived to an extent.
There have also been consumer complaints that the safety standards in the cars is not on par with what they pay when compared with what same carmakers offer to customers in other developed markets in the comparable segments. The transition from BS-IV to BS-VI could be another factor carmakers need to look. There may be a section of buyers who would want to wait out for another six months to buy BS-VI cars.