Archive for January, 2017

Decline in production of vehicles after demonetization   no comments

Most of the car buyers are wealthy and have plenty of cash , in some ways, a car or vehicle is a luxury in a country like India where a large section of the population is making very little money. With demonetization most people were forced to deposit their cash in the bank, and they cannot remove large amounts quickly , as the removal limit is restricted to Rs 24000 weekly.
Usually people who have plenty of cash, and are looking of options of spending will purchase a car or vehicle, and since now people have relatively less cash, they are not purchasing vehicles. Hence in December 2016, the car manufacturers reported the greatest decline in car sales in 18 years, mainly due to demonetization, which adversely affected many business as a lot of time was wasted depositing and withdrawing cash .
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Written by ydpa on January 13th, 2017

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