Ad hoc policy changes increased the cost of ownership for rural consumers who were already suffering on account of inadequate monsoons and a fall in farm prices. ShutterstockWhile behavioural changes and the lack of funds have been cited as the main reasons for the slowdown in the automobile industry, there are certain regulatory changes that have also affected this sector’s growth adversely. These ad hoc policy changes increased the cost of ownership for rural consumers who were already suffering on account of inadequate monsoons and a fall in farm prices. But the slowdown in the automobile sector has changed the picture. This will be a huge setback for India’s automobile sector, which is in dire need of investments so that market prices can be reduced to stimulate demand.

Source: The Telegraph October 21, 2019 21:11 UTC