Demonetisation: Used car market sees 50% drop in sales
Malappuram: The used cars industry has recorded a fall by more than 50% with subsequent layoffs following the demonitisation. The prominent used car showrooms have shown a drop by almost half with sales figures dipping to 150 and 120 from the usual 300 a month. The payment mode in most of these sales was hard cash with just around 10-12% relying on electronic payments and just around 8% relying on cheque payments.
Even though the enquiries have not dropped they mostly end over questions of payment. The fear of inviting tax enquiries on transactions above Rs.2.5 lakhs has also been a major dampener. There are reports about enquiries seeking the possibility of making payments in the old currency.
Some 15% of the employees in this industry mostly new recruits have been temporarily laid off from work on promises of a return once things start looking up. The sales in the luxury car segment has also been affected severely. In the place of the 15-20 cars that were sold every month, the number hasn’t crossed seven this past month. With crunches biting hard into the business, the industry experts opine that a revival can be expected only by March.