Source: Business Standard, Jul 29, 2019
Chennai: A slowdown in the automobile sector has resulted in 286 dealers winding up operations across India. This has affected 32,000 jobs. A big chunk of the closure was reported in urban and semi-urban markets and mostly in the car segment.
Industry representatives are hopeful of a revival in the second half of the year. According to the Federation of Automobile Dealers Associations (FADA), the apex automobile retail industry body, the closure was reported in 18 months, ending April 2019. The worst-hit is the passenger car segment. Maharashtra leads with 84 closures, followed by Tamil Nadu (35), Delhi (27), Bihar (26), Rajasthan (21) while the rest is spread in other parts of the country.
Vinkesh Gulati, vice president, FADA, said dealers in tier-II and III cities were not affected much since operation costs are low there. Besides poor sales, he alleged that OEMs have been aggressive in expanding dealerships, which resulted in unhealthy competition. Read the rest of this entry »