The demand for passenger vehicles faces drop by 33% in two years.
Tata Motors sales went down to 12% in March and Hyundai Motor India sales drop 7.6% from last year to 44,350 units last month.
High waiting time and huge fare rates can shift folks from cabs to private cars.
Ride-hailing segment is enhancing aggressively. Major players in this sector Ola and Uber have attained high parapet of success and folks are taking great interest in availing their services. Due to the immense popularity of these ride-hailing behemoths demand for passenger vehicles is reduced by 33% in two years.
According to SBI Capital Securities report, cab aggregators have caused a downfall in demand by one-third in the last two years. The report said that automobile sales saw a major drop past Diwali. Since Diwali is the peak season for sale of automobiles but because of enhanced fuel prices, insurance cost and interest rates the sale has fallen.
In the last fiscal year automobile giants Toyota Kirloskar Motor, Hyundai, Maruti Suzuki India, Honda Cars India, Mahindra registered a mere single-digit growth. As per industry estimates, the sector grew by around 2% to around 3.3-3.4 million units. Hyundai Motor India sales drop 7.6% from last year to 44,350 units last month. Maruti Suzuki, missing its own revised forecast of 8%, posted sales growth of 4.7%. Tata Motors sales went down to 12% in March.
Passengers are not also quite happy with facilities provided by Uber and Ola because the waiting time for cab enhances to 20-30 minutes and fares also rise anonymously during peak hours and due this passenger are also altering their choices to sell cars. These two could result in the reason for resifting of folks to private cars. Ola and Uber are continuously raising funds and enhancing their technology to make customer’s experience hassle-free and more comfortable.
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