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Sales drop! Some reasons behind this huge loss for Auto-Industries.

Recently there was this huge issue on sales and many people have their own expectations and thoughts and to clarify that this one will help. but only some of the major reasons are which I am gonna list here and if anyone has any better and compelling reasons about the cause please comment them down.


1. BS-6 : I obey that the BS-6 vehicles are helpful for nation's environment and people and its actually a good step that due to Delhi's pollution govt has taken a huge step in announcing that there should be only BS-6 powered engines and not the BS-4 ones in future and they should make it asap. But the companies are struggling in meeting these standards and also govt has ordered them i.e, they should meet the standards for the safety requirements like 2 airbags, ABS and all. They should have remained on their word because now Nitin Gadkari recently stated that there will be no ban on vehicles in future and previously they thought of banning the diesel vehicles after 10 years but now they somehow changed their plan on them but haven't revealed it. It actually confused the customers in India like if they buy then they will be banned soon so they didn't buy many vehicles. 


2. Companies: This might sound harsh but companies do have their part in creating this loss for themselves. After they tried to reach the safety standards they have increased the costs and also now so many are struggling to create the BS-6 and very particularly Maruti Suzuki. When companies are struggling like this, the point is that the govt should have called the executives of companies and should have done this very early like in 2016-17 and why these years only is because if they have started it there it would be a different scenario now. What I mean to tell is if they have taken a step by giving more awareness to people i.e, the customers from companies itself like the showrooms and all. If they have started it there then even though they have to pay a bit more also it wouldn't be the same as now.


3. Other reasons: Recently the Finance minster said: " Due to the huge demand for the online services i.e, the Uber and Ola is the reason for the sales drop." It is acceptable for some limit because every time one has to go to some distant places inside cities they would be taking the taxies and all but making it as the sole reason isn't all good. Thing is that they are just services who help you travel from one place to another without your effort in physical but owning cars is for driving them, having them and going to places that not only inside the cities but very radical places as well. So, loading all this drop on them isn't all fair in my opinion. If there is any person who wants to own a car with a lot of conditions like mileage, service, maintenance, and others and if he expects it to happen in low cost, then he would go for either Maruti or Toyota because as of now they are the ones with very less maintenance for their vehicles. But if an individual decides to buy a vehicle at any cost then he will buy it anyway. Not only Ola and Uber but also other services like carpooling apps and all are some reason for this drop but not the bigger players for sure.



4. Prices : If one observes the market keenly then they might have understood that the sales for sedans, hatchbacks and also luxury cars are getting a bit low from sometime but the sales for SUV's like Brezza, Seltos, Venue, Creta, Hector, Harrier and all are drawing more attention and also sales as well and its proved with the bookings of Seltos, Hector resuming booking until they get themselves on track with the deliveries. So, everything here matters and the companies should price them reasonably. Customers will surely check and evaluate every aspect in a car before buying because it should satisfy most of their needs. It would be better if the companies provide quality, safety in their cars along with reasonable price and I don't mean cheap but considering every aspect they should price them is what I meant to say.
5. Self-drive rentals: This is not a big reason but surely relate to some part of it. Companies like Hyundai is getting into this business very soon and the way is they will rent their cars for some period of time like 6months, 1 year and more depending upon the customer requirement. So, this will let them experience having a car as well as owning for some period of time at an amount that will satisfy them. Drivezy, Zoomcar, Revv and all are in this category of providing the customers the experience of both driving them and having them but for a very limited time.


Conclusion : The Reasons are many for this but what can change this situation are the companies and majorly govt because companies say if they release BS-6 they will be costly and customers will not buy them as they will be a bit costly than the BS-4  and EV's need infrastructure which is not there in a full-fledged manner like in foreign countries. So, as I menationed the companies and govt are the players here and they solely can change this sales drop into high sales.

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