India's auto industry is stuck in a massive traffic jam. The industry has experienced its worst ever year in the last decade, with sales plunging 6.7% in FY'13, the biggest drop since FY'01 when the numbers went down by 7.7%. At one time, the industry was growing at over 20%, making it the fastest growing car market, after China.
The huge fall in sales reflects lower consumer demand mainly on account of lower overall economic activity and rising fuel and maintenance costs. This has added inventory and piled cost on the beleaguered auto industry, already reeling under discounts and price undercutting.
|Source: Reuters India|