A slowdown in the automobile sector has resulted in 286 dealers winding up operations across India. This has affected 32,000 jobs. A big chunk of the closure was reported in urban and semi-urban markets and mostly in the car segment.
Industry representatives are hopeful of a revival in the second half of the year. According to the Federation of Automobile Dealers Associations (FADA), the apex automobile retail industry body, the closure was reported in 18 months, ending April 2019. The worst-hit is the passenger car segment. Maharashtra leads with 84 closures, followed by Tamil Nadu (35), Delhi (27), Bihar (26), Rajasthan (21) while the rest is spread in other parts of the country.
Vinkesh Gulati, vice president, FADA, said dealers in tier-II and III cities were not affected much since operation costs are low there. Besides poor sales, he alleged that OEMs have been aggressive in expanding dealerships, which resulted in unhealthy competit
TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.
Subscribe To Insights
Key stories on business-standard.com are available to premium subscribers only.Already a BS Premium subscriber? Log in NOW
What you get on Business Standard Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.