Since most of the companies are experiencing a slowdown due to the financial crisis, they have withdrawn most of the facilities including cab services. Cabs are used to ferry employees of IT, IT enabled services, and for tourism sectors. But now cab services are increasingly seeing a decline.
Well, the overall situation has also affected the car manufacturers. It is observed that sales of popular cab models like the Chevrolet Tavera, Tata Indica and the Toyota Innova have fallen drastically. Obviously, this has resulted in loss on sales slump for the car manufacturers.
Toyota has admitted that at least 20 percent of Innova sales are contributed by cab services. But it is now declined to 10 percent. The demand from the taxi segment has fallen and so is the demand for financing the vehicles.
The cascading effect of the slowdown has also touched the banks. They have found that many taxi operators have started defaulting on their loans due to lower income. Currently, the banks do not have any rules to confiscate the vehicles and release their loans. The effect of slowdown is clearly visible everywhere which has tremendously impacted all the sectors including car industry.