Bad sign for four-wheelers: Car sales dipping in metros, Bengaluru, Mumba record low sales

Dip in car sales.

The Hush Post: Regular traffic jams, app-based cabs, parking problems, other infrastructural issues, online shopping and the expanding metro networks have resulted in dip in the sales of four wheelers in big cities like Delhi, Bengaluru, Mumbai.

Numbers suggest that car sales dropped 20 per cent in Mumbai in 2017-18 when 97,200 cars were sold during the year. Compare this number with 1.22 lakh sold in 2016-17. Bengaluru, with its choked roads but younger and tech-savvy population, saw car sales fall by 11 per cent.

The country’s largest car market, Delhi, recorded a marginal growth of 1.6 per cent. But the growth dipped when compared to previous year records.

“Metro cities are surely finding challenges due to rising trend of shared mobility through platforms such as Ola and Uber,” says Rakesh Srivastava, director (Sales & Marketing) with Hyundai India.

The other key factor is rapidly-growing transportation, especially in employment hubs such as Gurgram, Delhi, etc.

Also the sales of second hand cars have dipped. “If the homemaker had a car earlier for household chores, now she orders online or simply calls from an app-based cab.”
Also lesser purchases by drivers of fleet operators and shared mobility has also contributed to the lesser sales of four wheelers. This is because companies such as Ola and Uber have brought down driver incentives. Implementation of GST too impacted the fleet purchase. “Fleet sales dipped nearly 50 per cent in 2017 when compared to last year.”

Also growing road congestion is going to make it difficult to enhance car market in big metros.

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