Demonetization, that is 500–1000 rupee note ban has taken the country by surprise. Quite a buzz in the world, PM Modi has proved to be quite an unpredictable leader in the history of India.
The currency ban on a short notice period has affected the car market a lot.
Effect Of Demonetization On Car Industry:
People used to buy cars mostly in cash and also the down payment of any car was usually in hard cash. Hence, due to demonetization, the car industry is suffering through a great loss.
The dealers would soon start with heavy discounts to increase the dropped sale of cars and to profit a sustainable amount of money.
The buying process has slowed down due to the sudden change in currency.
Not only the new car market is affected by the currency ban but also the sale of used cars hit the rock bottom lately.
Now, the more expensive the car, the heavier discount expected due to present currency conditions.
The unorganised car market bears a heavy load on cash while the seller claims heavy depreciation, the buyer ends up paying a much lesser tax on his purchase. Such trends are not just restricted to luxury cars, but are often seen in case of sale and purchase of lower segment cars as well.
In a situation where cash is limited with every individual, online players might take this opportunity to take the leading edge. Market places like Flipkart, Amazon and PayTM are already taking booking online and their sales might shoot up in this situation.
Though, our Prime Minister had opted to implement a very bold step, it still has its own pros and cons when it comes to any sort of business or economy situations. So let’s hope for the best and maintain consistency as well as fairness in our transactions!