Luxury Car Market Dwindles as Growth Rate Shrinks

The share of luxury cars in India is about 1.17% of the overall passenger vehicle market, which is the smallest amongst othersectors. this share had reportedly shrunk due to the present uncertainties of the Indian economy and political scenario.

The Indian luxury car market almost contracted by a quarter in the first half of 2019. Though the luxury car segment leaders Audi and Mercedes-Benz seem to be optimistic about the forthcoming months, they also indicate concern over the possible dampening effect on their potential customer base due to the recent changes in the taxation of individuals with income higher than two crores which serve to be a major portion of the target market.
The shrink attracts attention as the market did worse than the rest of the industry, which is unusual in India as it typically outperforms the market. The first quarter witnessed a marginal decline but the second quarter saw a dip of almost 30% which was unresolved even by the means of additional dealerships and new model introduction.
Macroeconomic factors are turning out to be a substantial snag as high-interest rates, rising import costs and liquidity crunch had deeply affected the industry. India’s shift from Bharat Stage IV emission standards to BS-VI has also increased the cost associated with the technology change and could discourage more buyers.The major players of the automobile industry fear that the market may hit the lowest growth rate decline in a decade.

Comments

Significance of the “Developed Country” Tag for India

By Xeena Mehta The officials of the United States Trade Representative (USTR) uphold a list of countries that categorises countries as “developing”, “developed”, and “least-developed”. Countries that are classified as “developing” have permissions to export certain goods to the U.S. without being hit by heavy legal tariffs that are bind to be imposed on goods from “developed” countries. The “developing country” tag was originated by U.S. Trade Act of 1974, to aid poor countries develop faster. World Trade Organization also acceded to grant trade benefits to countries that were classified as poor. If noticed we can see that about two-thirds of countries that are members of the WTO classify themselves as “developing” countries and avail fore deals. Any such classification of whether a country is “developing” or not is entirely objective. While the economic progress achieved by India and China have achieved over the last few decades is seen as a valid reason to get rid of their s...

Changing Environment For Local Business In Sri Lanka; Government Initiates The Revolution

Local industries and businesses are the backbone of the economy of any country. Additionally, Sri Lankan Government defines a local company as one with a minimum ownership of 51% of a Sri Lankan. To help these companies grow, the Sri Lankan Finance Ministry has proclaimed a circular enlisting the priorities to the local companies. Moreover, this move from the government may bring some salient alterations in the condition of the local manufacturers. The government has also come with up steps that will augment the local industries across the different domains. These domains include IT sector, construction, etc. The circular, as issued by the government includes relevant documentation regarding sourcing of resources and products. Additionally, sources point towards the fact that the government is hoping to extend support to the domestic sector and help them grow. Besides, the major focus is on the three sectors- IT software and hardware, construction and furniture and allied products. Pos...

SECOND WAVE OF VIRUS LEFT INDIA’S HOSPITALS IN TROUBLE AS SHOTS RUN LOW.

India is facing a health crisis because of the second wave of the virus which is hitting high records. Hospitals around the country are facing a huge shortage of care beds and intensive drugs. From the wealthiest state Maharashtra to the most populated state Utter Pradesh there has been a shortage of hospital care beds and immunization centers which results in turning away people as they are running out of vaccines. Maharashtra’s health minister Rajesh Tope has announced a strict weekend lockdown in order to control the situation. Mumbai has currently used up all but 3% of its intensive care hospital beds. Mr. Rajesh Tope has warned the state that they have three days’ worth of shots in stock and vaccination centers across the state are being forced to close down. Chief minister Punjab said that the Punjab’s vaccine will last another five days, urging the government to increase the supply. New Delhi -the capital of the country is also facing a lot of troubles due to the virus. At ...

Entrepreneur Digest

Search This Blog