SUV Boom Reflects Economic Inequality in India
Congress leader Jairam Ramesh highlights a decline in passenger car sales as a sign of economic inequality in India. He attributes growing SUV sales to a disparity in consumption patterns, with the majority of Indians barred from luxury purchases due to stagnant incomes and poverty.
- Country:
- India
A concerning trend in India's auto sector illustrates the nation's deep-rooted economic challenges, according to Congress General Secretary Jairam Ramesh. He cites a notable drop in passenger car sales, now comprising only 31% of vehicle sales, as evidence of growing inequality and restricted consumer purchasing power.
Highlighting the surge in sport utility vehicle (SUV) sales, Ramesh argues this shift signifies the affluent population gaining a disproportionate advantage in the economy. Meanwhile, middle-class aspirations face hurdles, marked by their diminishing transition from two-wheelers to entry-level cars amid stagnant incomes.
Ramesh notes a shift towards used-car purchases and auto manufacturers' focus on exports rather than domestic sales, signaling weak investment incentives in India's auto manufacturing sector. This reflects a broader issue of limited growth prospects for the lower and middle-income segments in a medium to high inflation economy.
(With inputs from agencies.)
Google News