Why Is The Market For Cars On A Declining Mode?

Who doesn’t like driving a car? It is a craze. Right from the childhood the imagination of one driving a car goes wild. We have sports events on car races called formula 1 which is a single seater auto racing of world class and is one of the few huge revenue earning auto mobile sport in the world.

Everyone has an urge to own a car of his own. In the event of the petrol prices going up day by day, the cars are also interpreted to be a white elephant as its maintenance cost is pretty high comparatively. However in the recent past there has been a voluminous drop in the sales of automobiles. The car sales showed a drastic dip of over 16 percent from April 2018 and the fall is continuous. This has taken a toll on the automobile sector leading to closure of some units as well as auto dealerships too across the country. Now let us see the reasons for such a decline.

1. Fall in the purchasing power due to stagnation in wages.
2. Hikes in Fuel price, Taxes, vehicle registration costs. The price of petrol has almost doubled in the past over 20 years.
3. Weaker consumption sentiment may be due to the expectation of decline in prices further or a wait for a better bargain.
4. Infrastructural development such as setting up the metro rail across the country, over bridges to combat the traffic also contributes to lesser people wanting to buy cars and instead use alternative method of commutation.
5. With the introduction of pre booked cab facility such as the Ola and Uber and the like people prefer taking that to travel as it works out cheaper than maintaining a car and running it.
6. There is so much traffic on the roads and especially in places like Bangalore, Mumbai, Delhi etc it takes so much time to travel from one place to another by car and people feel that they should avoid this and instead take any public transport to save the hassle of driving on a traffic prone road.
7. Pollution- A realization of the climatic change conditions and also being a prime cause of global warming due to emission of Co2 and green house gas causing the temperature to rise is also one of the reasons for decline in car sale.

What is a Hybrid Car- The fairly new concept of Hybrid cars which utilizes the mixture of petrol, diesel and electric works a long way in pollution control and also cost reduction as compared to the conventional ones.