Ashok Leyland, Hinduja Brothers Company has reported a downfall in their sale in the month of August. Amid slowing down of economy this is certainly not going to help the government. Heavy-duty commercial vehicles excluding buses always considered as a tool to measure economic health. Struggling in this sector shows how grave the situation is already the Auto sector of India already facing negative growth. They have already halved their production and have started cutting jobs. What if heavy-duty vehicle making companies start following the same path.
Not only Ashok Leyland but also other medium and heavy-duty vehicle companies like Tata Motors, Volvo, and Mahindra and Mahindra registering negative growth. With the plunge of GDP from 5.8 to 5 % in first-quarter government seriously needs to take stringent action. Touch up like mergers, decreasing low-interest rates may not help now.
The government needs to understand there is no issue with supply-side but the demands from the consumer have really fallen. As the unemployment rate is increasing purchasing power or willingness in public is decreasing. Governments need to spend money, they will have to provide money in people hands so that they will go out and buy things.