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India’s auto industry reshaped by new mobility and online retail

Ride-sharing, ride-hailing, online retail and worsening congestion are causing Indian consumers to opt for usership over ownership, leading to a decline in big city vehicle sales. By Radhe Shyam

There is an alarming trend building up in India’s automotive market. Much to the disappointment of vehicle manufacturers, car and SUV sales in some of the top Indian cities have started to fall, weighed down by the rising popularity of ride-sharing apps and increased use of fast-growing online shopping platforms for the purchase of items such as grocery, food, electronics and clothes.

The decline, perhaps the first in many years, is also prompted by the rapidly-improving public infrastructure in some of these cities which are already choked for space and frequently witness traffic snarls and frustrating delays.

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