Sharp Fall in Auto Sales in December: Reason Due To CAA and NRC?

There has been a sharp decline in auto sales. The reason might be protests against the CAA and NRC. Can this make a rollback agan?

The automotive industry has indicated that the total passenger vehicle production in November stood at 2,90,727 vehicles (reported from India Today), which indicates that players in the auto industry are trying to ramp up production activities. But as of December, there has been a lot more decline in car sales in India.

Maruti Suzuki and Renault
Image: CarWale

Contents of this post-

  • CAA’s Impact on the Automotive Sector
  • What is CAA?
  • CAA affects car sales?
  • How much time will it take for the automotive sector to recover again?

There had been a 4 per cent rise in the car sales during the month of November. Moreover, the domestic auto sales had been declined by 11.8 per cent in November 2019

According to a report by Society of Indian Automobile Manufacturers (SIAM).

CAA’s Impact on the Automotive Sector

First of all for all those who aren’t aware about CAB. Here’s a little definition that will make you understand what CAB is.

What is CAA?

The Citizenship Amendment Act, 2019 was passed by the Parliament of India on 11 December 2019. Moreover, it has amended the Citizenship Act of 1955 by providing a path to the Indian citizenship for-

  • Hindu
  • Sikh
  • Buddhist
  • Jain
  • Parsi
  • and Christian minorities fleeing persecution from Pakistan, Bangladesh and Afghanistan
  • Excluding only Muslims in India

CAA effects car sales?

CAA has declined the vehicle sales marginally by 0.84 per cent to 2,63,773 in comparison with 2,66,000 vehicles sold last year during the same period.

However, the fact that domestic car sales went down 10.83 per cent to 1,60,306 units compared to 1,79,783 units in November 2018 could also be a matter of the protests against the CAB.

And what about Motorcycles

Motorcycle sales, too, declined by 14.85 per cent to 8,93,538 units last month in comparison to 10,49,651 units sold in December 2018.

How much will it take for the Automotive Sector to Recover again?

Just because of CAA, it may take longer than expected for a genuine recovery in the auto segment as overall vehicle sales across categories faced a decline of around 12.02 per cent to 17,92,415 units in November 2019 from 20,38,007 units in 2018.

For more news, please stay tuned.