New Delhi: Weak consumer sentiment, along with a rise in borrowing costs and increased fuel prices dented domestic automobile sales last month, a research note said on Wednesday.
According to a report from India Ratings and Research, domestic automobile industry’s sales volume declined 14 per cent yoy (Year-on-Year) in March 2019. The report mentioned that commercial vehicles’ sales in March remained muted on account of slow performance of the core sector amongst other factors.
“the new axle load norms have increased the maximum load carrying capacity of existing vehicles; consequently, despite an increase in demand for transportation, demand for new trucks declined,” the report said.
In addition, sales were affected by lower credit availability owing to a liquidity crunch in the non-banking finance company sector, which is the main source of funding for commercial vehicles. (IANS)
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