Demonetisation hits India auto hard: December sales down 18%, lowest in 16 years

The cash crunch across the country, as a result of the demonetisation of Rs 500 and Rs 1,000 currency notes in early November, as well as the year-end impact continues to hurt the Indian automotive industry.

There is also the factor of consumers delaying purchase decisions in the last month of the year, preferring to register a vehicle in the new year.

As per the sales numbers for December 2016, revealed by industry body SIAM today, overall vehicle sales are down sharply by 18.66 percent compared to a 5.48 percent drop in November 2016. This is the second ...