Undoubtedly, various sectors are affected after demonetization due to lack of money to pay. Numbers of merchants who were dealing in Cash have faced problems as transactions from consumers were nearly stopped or in very less amount. Due to adverse effect, economy was pointed towards lower point in past decade as rural areas were in no condition to go smoothly from cash-on-hand.
Recovering from the speed-breaker of demonetisation, the domestic passenger vehicles market is likely to cross to the 3-mn sales mark by the end of March, 2017. From November 8 to till date, Automobile sector was slipping down despite of innovations in it. In November, growth was only 1.8 per cent, and in December it declined by 1.3 per cent. But the figures started improving in January this year, touching 14 per cent.
Various Automobile companies like Maruti, Toyota, Honda, Renault, Tata has shown up-scale in profit after demonetization. Hyundai is yet to recover the targeted figure before March ends and it is closer too.
Maruti Suzuki, which clocked an increase of 11.5 per cent in domestic sales to 120,599 units. Growth was helped by higher volumes in compact segments, which includes vehicles such as the Baleno and Ignis, and utility vehicles such as the Brezza. The company enjoys a market share of about 47 per cent.
Korean car maker Hyundai recorded a 4 per cent growth in domestic volumes last month. Rakesh Srivastava, senior vice-president (sales & marketing) at Hyundai, said the impact of demonetisation was wearing off and customer sentiment was improving.
Utility vehicle major Mahindra & Mahindra saw a decline of 13 percent in February sales. A downward flow has continued for the domestic company since demonetisation. The company sells a large amount of its vehicles in rural markets where most buyers used to rely on cash for making payments.
Toyota and Honda are moving leg to leg and have progressed in SUV cars of higher segment. Strong double-digit growth in sales has also been seen by Renualt, Ford, Nissan and Volkswagen.