Showing posts from June, 2019

Is falling Auto sales a real worry or a market adjustment?

For the past few months, there has been a consistent drop in Auto Sales across almost all leading companies. This has been true for all segments including Passenger vehicles, Commercial Vehicles and also Tractors. A lot if discussion in the media and experts is currently revolving around the slowdown in demand. Coupled with the GDP data, the hypothesis for the same seems to have some valid justification in the perspective of some people. My personal take here is drop is Auto sales is nothing to worry about in the medium to long term. India is passing through a transition phase in Automobile industry. My gut feel is; a) OEM to Dealer is the sales that is recorded. The drop in auto sales at the moment may have to do with aligning to BS VI which is to be rolled out effective 1st April 2020. There may be a possibility that the OEM's would keep lesser pipeline inventory of the old version. So the push from OEM to Dealer is less. This balancing of inventory naturally has