Sunday, 1 January 2017

Car sales dipped by 30 % after demonetisation


1 January 2017

PUNE: Demonetisation would be the single largest disruption that the manufacturing sector has seen this year. Sanjiv Shah, treasurer of the Pune Metal Finishers Association, said this move had affected the automobile sector the most with sales of cars and two-wheelers registering a 30 per cent dip.

Shah said in the first month post demonetisation, he faced problems in paying salaries to his employees. “Demonetisation was announced on November 8 but prior to that, I had withdrawn the total amount in denominations of Rs 500 and Rs 1,000. However, when my employees could not get these notes exchanged, they brought them back to me,” he said. 

Due to the heavy rush in banks, the first month was a challenge in terms of payment but the month after, Shah ensured everyone was paid by cheques. “With banks unable to dish out cash, employees had a hard time footing their monthly expenses,” he said.

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