As poor economic growth takes a toll on individual incomes and the job market, car buyers are now opting for smaller and cheaper cars, away from premium hatch- backs and sedans. The result has been a steady decline in per-vehicle revenue for car makers. Revenue break-up of car makers also suggests that buyers are now changing their cars less frequently, Compared to the past. Consequently, revenues from spare parts and vehicle servicing are growing at a faster clip than revenue from vehicle sales in the domestic market.
Courtesyg: Business Standard 05-10-2020
