Explained: Why Maruti Suzuki’s sales are dropping

Industry insiders feel that while the pressure on NBFC’s and liquidity squeeze in the market is a big factor, the decline in customer confidence is another factor that is leading to a continuous slide in sales of passenger cars.

The sharp decline in sales numbers of the leading manufacturer shows the decline in consumer sentiment and indicates an overall slowdown in the economy. (Express photo)

India’s biggest passenger car manufacturer Maruti Suzuki announced a 36.2 per cent drop in passenger car sales in the month of July 2019. The company domestic sales fell 36.3 per cent at 98,210 units down from 154,150 units a year ago in July 2018. The absolute domestic unit sale of 98,210 for the month was lowest since June 2017 when the company sold 93,263 units.