BJP formed Government's decision of banning the 500 and 1000 rupee currency notes has hit many sectors of the economy including the automobile industry. Naturally it has caused a shortage of cash for the Indian buyers resulting in limited sales of various sectors across India. Maruti Suzuki which is also the market leader in four wheeler sales in the country also has been hit bad with demonetization.
The company has revealed that they have witnessed a drop of 20 percent in the sales figures of October-November 2016 as compared to sales last year. RC Bhargava Charirman, Maruti Suzuki said that both the bookings and sales values at their True Value outlets have experienced a major hit. The sole reason for it being the shortage of cash with the average Indian buyer.
The Chairman also said that the company was playing in double figure growth rate before the demonetization led to a dip. He also added “I can see that even if things go bad for some reasons, we will not be very different from 10 per cent. I am not prepared to make a forecast for the next few months. I want to have a little bit of evidence as what happens in January before we predict for the whole year,”
The effect was immediate and also the company correspondents claimed that they are in a better position this month. Maruti Suzuki has seen an improvement of 7% in sales for the month November-December 2016 compared to last year same month. They also revealed that will will invest INR 3,800 crores on Research & Developement centre in Rohtak by 2019.