Macro phenomena as stated below are expected to be the largest subscribers for the slowing down of car manufacturing industry.- Increase of price of crude oil worldwide.
- Increase of price of steel worldwide.
- Profit of Car Manufacturing industry will go down & in turn will reduce the share price of those companies involved in car manufacturing.
- Banks vis-a-vis Financial Institutions will not be able to deploy its resources (i.e., Deposit) for purchasing cars (expected to be availed of by the borrowers for purchasing cars) due to reduction of demand in the market.
- There will be a very big jolt for the transport industry as a whole.
- A good news for Car Manufacturers using CNG Technology and can expect a sizeable increase in sale of their cars.
- Two-wheeler manufacturers are now in an advantageous position.
- It is a hey day for "Nanos" of Tata.
But think about the road space available for movement of cars in the cities especially in metro cities & State Capitals. A real enigma indeed!
Prof. B. K. Bhattacharya
(Globsyn Business School - Ahmedabad)
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