REASON BEHIND SLOWDOWN IN THE AUTO INDUSTRY
1 .NBFC CRISIS: After the dramatic default on IL ,FS last September , the NBFC sector has been faced with the major liquidity crunch ,The overall exposure of mutual fund to financial sector plummeted by approximately Rs.64000 crore between july 2018 and june 2019.
2.DECLINE IN DEMAND: Specially in rural area for new automobile is responsible for the degrowth of the auto industry reason behind the auto slowdown and has a weightage of 20%.
3.INCREASED ACQUISITION COSTS: vehicle price have seen an upward revision in 2019 and the trend is expected to continue in 2021 , due to various safety , insurance and emission norms related compliance costs.
1 .NBFC CRISIS: After the dramatic default on IL ,FS last September , the NBFC sector has been faced with the major liquidity crunch ,The overall exposure of mutual fund to financial sector plummeted by approximately Rs.64000 crore between july 2018 and june 2019.
2.DECLINE IN DEMAND: Specially in rural area for new automobile is responsible for the degrowth of the auto industry reason behind the auto slowdown and has a weightage of 20%.
3.INCREASED ACQUISITION COSTS: vehicle price have seen an upward revision in 2019 and the trend is expected to continue in 2021 , due to various safety , insurance and emission norms related compliance costs.
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