When demand shows no signs of improvement, manufacturers slow down supply to stimulate sales. When this does not work, they suspend manufacturing to minimise losses and this is what a few local automobile companies have started doing, according to news reports. Certain companies have declared the second half of September as “non-production days” due to a steep fall in demand. This is not the first time they have been forced to do so. Some automobile makers have also recorded losses in domestic sales. Not only automobile, two-wheeler deliveries have also come down by 17 percent in the new fiscal year. Data is clearly heralding dried-up sales and no signs of reversal. The ensuing toll of shrinking sales of straight three months will mean closure of showrooms and firing of staff at manufacturing plants and dealerships. The whole eco system of automobile sector is at stake. Car dealers have already warned against shutting down the businesses if the government does not consider their demands. The sector blames the hefty excise duty on car engines, devaluation of rupee and additional customs duties on imported parts and raw material resulting in an overnight price hike and contracted sales. Media reports are full of stories of piling inventory of over 3,000 vehicles. Some companies’ production and sales of different vehicle categories went down 40-60 percent in July-August compared to the corresponding period of the last fiscal year. The government will have to negotiate through the crisis to strengthen the economy and save millions of jobs. In recent times, a personal vehicle, which earlier used to be a luxury, has become a basic need. The lacklustre performance of government after government in provision of mass transit and public transport encouraged the growth of the automobile sector. Banks saw an opportunity in the demand hike and opened up a floodgate of cars on roads through a soft lease regime. All big cities have conceded their once wide walkways to parking lots. It has become a real struggle to negotiate a small distance on foot. The telling impact of bumper to bumper road movement on environment is also a fact. A well-balanced policy is required to the keep the automobile sector afloat and a healthy lifestyle intact. *