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Why the festival season may not bring much cheer despite tax cuts by govt

Car sales in August fell the most on record and Maruti Suzuki India Ltd

Photo: Bloomberg

Photo: Bloomberg

Ronojoy Mazumdar | Bloomberg
Poor demand from Indian consumers could dampen the mood during festivals next month, especially for automobile makers and retailers that count on the season for a sales boost, analysts predict.

Indians typically buy everything from new cars to shoes for themselves and as gifts during celebrations steeped in religion and tradition. Yet the slowest economic growth in six years, unemployment at a 45-year high and tepid private consumption may see sales fall short of recent years, even after the government’s $20 billion tax break to companies earlier this month.

“You can make the product 50% cheaper, but there has to

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First Published: Sep 30 2019 | 7:07 AM IST

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