Car sales in May continued to slow down in the past 18 years.

Private car sales in India decreased by 20.55% in May, compared to the same period of last year, the largest decline in nearly 18 years, due to the industry being affected by the credit slowdown, regulatory changes.

According to data published by the Indian Automotive Manufacturers Association (SIAM) on Tuesday, sales of factory-vehicles that manufacturers sell to dealers - have been recorded in all categories except commercial vehicles. Small

"These things happen just because of the economic slowdown. The decline in sales started after the flood of Kerala last year and the industry began to swing in a negative direction after the highest oil price ever had, "said Vishnu Mathur, general director of SIAM.

Except October 2018, the period when sales saw an increase due to the May 11th celebration, which was the eleventh consecutive month when car sales declined.

Passenger car sales in May were 239,347 units, compared with 301,238 units in May 2018. The final decrease occurred in September 2001, when sales fell 21.91%.

To ensure that the election year has been reduced to indiscriminate spending, such as car purchases, but Mathur added that this year's decline "never happened even during the election season"

Dealers are benefiting from unsold stocks, while some cannot accept goods because banks and lenders reduce credit.

The credit problem is the result of a crisis in the financial sector of non-bank companies (NBFC) which have liquidity to squeeze and make the bank unwilling to give loans.

As experts say that this has affected the buyers in the future as well

"There are various parameters for slowing down Does people's income decrease? No. The appetite of people in buying cars decreases or not? It is possible, especially when the NBFC crisis occurs. The availability of credit that people have reduced slightly. Most of the reduced sales will be in the entry-level vehicles up to the level of 7,000 l, with a 30% reduction compared to luxury cars. "Kuching Singh, Deloitte India partner, said

India's gross domestic product grew 5.8% in the January-March 2019 quarter and dragged the full-year growth to the lowest level in 5 years at 6.8%. The Indian Central Bank (RBI) in the latest consumer confidence survey reported Last week, the net share of respondents who thought they would spend more, whether now or a year from now The lowest time since September 2015, the first time that this information is available.

"The growth we saw over the past few years is extremely important on the basis of the needs of rural areas. The misery in the income of farmers and the agricultural sector in the last two years has begun to show growth over the past eight months or not, "said Vinkesh Gulati, vice president of the Federation of Automobile Dealers (FADA).

In addition, there are other factors, such as the transition to the new BS-VI release norms since April 2020, which means that manufacturers have delayed the introduction of major upgrades for their products.