These days last year (November 8, 2016 - February 2017) were crucial for almost all the classes of society. People thronged to the streets and roads flooded towards ATMs only to see heavy crowds in the snake-shaped lines as if it were for a Rajnikanth's Movie opener! The country was in a chaos of the cash crunch due to the bold step of Modi. It is a fact that only the middle class and poor see their hard earned money getting locked-up in the banks for which they had to go through all the troubles in taking it into their hands.
EeYuva presents you an exclusive review on the Demonetisation days and its profound impact on Automobile Industry.
2016: Big Blows Hit Auto Industry
The earlier announced BS-IV transformation and demonetisation during the year-ender hit the automobile industry like a Mohammed Ali punch so much so that it took three months for the Industry to come in conscience. The statistics of the sales were very low recording the least sales figures in these 16 years of the millennium. Many stalwarts of the Auto industry expressed grief over the idea of demonetisation as the industry was never ready to face a crisis like this.
Many of the economists and Business trend readers declared that it was only a small jolt to the auto industry and there was no much of difference in a bigger measure! Defending their stand, they explain that the November and December are never a big season for sales as the buyers tend to have sentiments to get a new machine in the new year itself. The impact was only seen in the month of January as the customers were postponing their buying choices as to see that the cash crunch gets settled. Automobile Industry got back on track in the month of February as there was a significant momentum in the sales and slowly everything fell in place as the digital means of paying took over!
Is It The Demonetisation Or BS-IV Transformation That Cost Auto industry?
Demonetisation was only a teaser sought of trouble but the main film came in the guise of engine transformation standards. The deadline for all the auto makers to transform their stock of vehicles into BS-IV was set to April 1, 2017. The automobile Industry couldn't face the losses and were not in a position to transform their stock, some of the auto makers like Bajaj openly expressed their grief and anger on this and planned to export their stock to the African markets.
As the Auto industry is slowly coming out of its shackles there came a thunderstorm like GST and Cess on automobiles not even leaving the hybrid vehicles only to force the legendary car makers shut their operations in India.
Let's wait and see if at all a good news comes up for the auto sector if a rejig happens on GST and Cess charges!
(Image Courtesy: FB)