The 7.5% GDP contributing industry is going towards a huge pit, and that too at an alarming rate, slowing down the economy and putting thousands of jobs at risk, making the situation of the country miserable, but then we ask what are the reasons behind these circumstances? and will it ever be back to normal again? Maybe, maybe not, in this article I will let you know about the outcome of this enduring situation. (or maybe you already have figured it out by the title of the article)
Before I start I would like to address that this article could make all the sense in the world or be completely meaningless to you and I know I could get a lot of flak for this, but still I will tell you why the Indian Automotive industry which is taking a dip, will continue to get worse in the longer run and it will be plummeting further.
So here are some of the reasons why I think that industry won’t be bouncing back around to its earlier eminence anytime soon, Here me out.
STRICTER LENDING GUIDELINES
One the most prominent reasons for the growth of the automotive industry was earlier anyone could get a financial help for purchasing a car but due to stricter lending norms these days because of faulty loans and numerous NPA’s, these rules will never become as they were earlier they will just become more and more stern. And that will contribute towards this dire situation, this is an irreversible reason because a few reasons in this article coming further could get changed but, the lending guidelines will always get more and more inflexible making the purchase of an automobile difficult, and this reason has risen because of the economic slowdown of the country, some might say due to demonetization and GST (not me, but SOMEONE)
THE RISE OF RIDE SHARE SERVICES
As our honorable Finance minister Mrs. Nirmala Sitharaman ji, provided the nation with a totally different perspective on the problem that is the ongoing trend of ride sharing services being used excessively by the “MILLENNIALS” is contributing to the situation of the automotive industry’s deterioration, I would like to break the bad news to you that this is somewhat or for the most part true, as an average Indian salaried millennial working in the cramped urban cities where roads are becoming more of home due to traffic, the millennial does not want his own car to be struck there, and also the cost of financing, maintaining and upkeep along with the overcrowded streets is pushing him further from getting his own vehicle, and this situation will also get severe as the future is filled with these “MILLENNIALS” (if we agree with Mrs. Sitharaman, which I do)
OVERCROWDING
In the last point I mentioned the term overcrowded, (I know that was self explanatory, but I will explain it further, cause I need this article to be long) so as everyone can see the problem of streets being overcrowded, this becomes another issue, and the reason of the industry taking a dip as people are now not willing to get there brand spanking new vehicles on road and getting stuck in traffic and risking their new vehicle to get scratched or dented due to close calls in the traffic, and this might not seem a big issue now but down the line this will become more severe and the effect will become more prominent in the coming future, the only solutions to this problem are either reduce the number of old cars of a certain age or increase the geographical area of India (whichever the government can do).
THE EXORBITANT TAXES AND INSURANCE COSTS
The introduction of GST has made the times worse, some might say (again not me, but someone) Higher and non-standard road taxes, which have been too frequent and inconsistent have led to auto-makers having to increase prices of vehicles again putting the customers in the suffering zone, also the increased taxes on automotive parts, have hiked the prices of vehicles and its maintenance, scaring away the buyers, and let’s also talk about the ever growing insurance costs, this too has been a helping hand in the current slowdown of the industry. These problems can be solved by the government, but as we know that the world is round, this will all get stuck at some point (you get the point, right !?).
These were some of the reasons to support my argument about the situation, if you don’t agree with these, I would like to know your thoughts and opinions in the comments section below, please let me know if there’s anything that I should have included. Hope you liked the article thank you reading, Peace ☮️.
THE INDIAN CARGUY 
2 replies on “Here’s why the INDIAN AUTOMOTIVE INDUSTRY will continue to go down!”
You can also add BS6 as a topic which can cover carbon emission,delay of constumers who’ll ve buying cars after the launch of BS6 leading to more decrease in car price,the electric cars also can be a good topic.
🤙🏻
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Thank you for the input Shubhanshu , but I wanted to include that point but I think , that is a short lived issue and which can be solved in the near future but these issues ar some of the severe one’s .
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