Build up in inventory is the first problem in auto stocks. This is happened due to the seasonal variation in demand. Check the link https://www.cmie.com/
Production cut due to slow demand. Watch the production numbers every month.
"If" company again starts to increase the production then buy the auto stocks. Watch the production numbers every month.
In the service sector and banking sector if the company add their employee it is a good sign for the company and growth.
BS6 norms are implementing from 2020 in India. Due to this Maruti stops their diesel car productions because after BS6 norms cost of diesel car production will increase this can lead to slow sales in the future.
People are not buying the car because people think it is right to take an ola or uber.
People are waiting for an electric car this lead to the slowdown
Demonetization has slowed the economy and implementation of GST was a second mistake by the government when the economy recovers from these problems growth will come
Buying a car is not an investment
The second-hand car market is another reason for the slowdown in the car industry
Rural demand is decreasing in India. Because of low farm income and high unemployment.
NBFC Companies are not providing loans easily due to a shortage of liquidity.
Price of fuel is increasing in future
Increase in insurance price
Car get expensive due to the additional safety feature rule by the government policies
Government changes the policies for car safety which include the compulsory airbag, parking sensor, ABS in all car models these features add additional price in a car which causes the increase in the car price.
Car sales have got down because most of the new car purchaser is new salaries youth. Due to the rise in unemployment, youth are not getting jobs to result in low sales of cars
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