Demonetisation has badly hit the automobile sector, with demand in Gujarat, Punjab, the National Capital Region and Northeast being worse than the rest of India, manufacturers, dealers and bankers said. “Fewer people are visiting dealerships and the impact on retail sales in November could be as much as 30%, with small business and trading communities abstaining from making purchase decisions because of the cash crunch, said the Federation of Automobile Dealers Associations”. The situation is worse in the second-hand market and for service stations, where most of the transactions are in cash. In markets such as Gujarat, Delhi and Punjab where the propensity to pay in cash is higher, sales may have dropped as much as 50% after the demonetisation was announced on November 8, bankers and dealers said.The bigger impact is seen in the unorganised used car market, which is driven mostly by cash based deals.According to experts, there is demand, but buying has been delayed due to lack of funds.