Automobile companies are facing a severe shortage of demand for passenger vehicles in the country. Thousands of vehicles have been left unsold for less demand and lesser sales of passenger vehicles in the country. One of the reasons for low sales and demand is slow pace of job, increase in fuel prices and liquidity crisis among financial companies. Due to this, the production of many big auto companies in the country has come down.

Many big auto companies such as Maruti Suzuki, Mahindra and Tata Motors have stopped production to clear their previous production stock. These companies have announced plans shutdown in the month of June. Some of these will announce shutdown in the coming months.

According to the Economic Times report, the automobile industry is facing a severe shortage of demand for passenger vehicle in the Indian market. Demand for cars has come down from the last 7 months, with the increase in inventory of company dealerships. According to the reports, the company's dealership now has an invoice of 5 billion dollars (Rs 35,000 crore) Unsold cars.

ET has also stated in its report that due to the closure of auto companies, industry output will be reduced by about 20 percent during May-June 2019. This will help reduce the pressure in the company inventory. In such a situation, the dealers who have gone through bad times will also get relief. Because the company dealers also have to pay GST for their stockyard's unsold vehicles.

Maruti Suzuki, Mahindra and Tata Motors also stopped production for several days in the month of May. Many more big companies such as Hondas Reno-Nissan and Skoda Auto are also preparing to close their production for 10 days.