India's automobile sales has saw their biggest monthly fall in 16 years in December after Prime Minister Narendra Modi's decision to ban high-value banknotes as server cash shortage in the economy dented demand for big-ticket items such as cars. As per the data released by Society of Indian Automobile Manufacturers (SIAM), automobile sales for December declined 18.66 percent on account of weak consumer sentiment in market due to withdrawal of high-value currency.
According to SIAM data, Vehicle sales including passenger vehicles, commercial vehicles, three wheelers and two wheelers, registered a decline of 18.66 percent at 12,21,929 units in december 2016 as compared to 15,02,314 units in December 2015. Since December 2000, this is the highest decline across all categories when there was a drop of 21.81 percent in sales. All the other categories of the industry saw decline in sales in December, barring light commercial vehicles segment, which saw a growth of 1.15 percent at 31,178 units.
The data showed that during the period domestic car sales were at 1,58,617 units as compared to 1,72,671 units in December 2015, down 8.14 percent. It was the lowest rate since April 2014 when sales declined by 10.15 percent. Further, Passenger vehicle sales declined by 1.36 percent to 2,27,824 units in December 2016 from 2,30,959 units in the year-ago month. Similarly , two-wheeler sales fell 22 percent in December from the previous month, one of the biggest falls on record, to 910,235 units, while domestic passenger car sales saw a 8.14 percent drop to 158,617 units.
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