Automobile sales fell by 18.61% across segments in December, the lowest rate of growth since December 2000, when they had dipped by 21.81%, according to data from the Society of Indian Automobile Manufacturers.
The report blames the demonetisation of high-value notes by the govt, which sucked out 86% of the bank notes in circulation in the country.
Domestic car sales sank 8.14% to 1,58,617 units in December 2016, against 1,72,671 units in December 2015. Sales of two-wheelers and three-wheelers were hit the hardest, particularly in rural areas, with drops of 22.04% and 36.23%, respectively.
Alongside the grim auto sales numbers, there was bad news from the corporate sector and the realty segment. A primary survey conducted by SBI Research between December 30 and January 3 showed that the demonetisation drive had impacted 69 per cent of businessmen in the country’s financial capital of Mumbai and the manufacturing hub of Pune.
Sectors such as construction and informal roadside trade were the worst hit by the note-ban, according to findings of the survey that covered different formal and informal business groups to ascertain the effects of demonetisation on daily business.