Recent statistics from JATO Dynamics India has revealed that Jammu and Kashmir recorded the maximum jump in car sales last year. The overall sales of states registered a decline of 9.8 per cent of passenger vehicles.
Jammu Kashmir was among a handful of states that recorded a growth in sales among the lockdown in India that was imposed due to the outbreak of COVID-19 in India. The state reported the highest growth at 53.4 per cent. Ranking the lowest was Delhi which reported a decline of 43.6 per cent.
FY20 has been a tough year for the Indian automobile industry. After facing sales crunch due to GST and the upcoming BS-VI norms, vehicle production across all categories is critically hampered due to the Coronavirus Outbreak that originated in China. Many automakers in India import about 10 per cent of their raw materials from the neighbouring nation, as per auto industry body SIAM.
Since the production of most plants in China and South Korea has been seized for an indefinite period, the Indian auto industry is facing it difficult to maintain an inventory. This, combined with the demand constraint due to BS-VI emission norms has created a ripple effect for the industry, which is unlikely to bounce back anytime soon.
While dealers across India were struggling to clear the stocks of older BS-IV vehicles for whom registration will close post 31st March 2020, they are now struggling to get the supply of BS-VI vehicles. Not just weakened supply of new BS-VI vehicles, coronavirus is also keeping buyers away from showrooms, and automobile dealers fear that they would not be able to liquidate the BS-IV inventory before the month-end deadline.