What slowdown? Car makers going to invest Rs 10,0000 crores on new cars
Despite economic constraints and continuing slowdown where auto sales are concerned, automakers in India are eagerly looking forward to the months ahead. Automakers such as M&M, Tata Motors, Maruti Suzuki, Hyundai and Renault-Nissan have set apart INR 10000 crores on catering to the changing needs of customers demands and are ready to introduce new products, new platforms and a host of updates.
Auto majors in India are currently working on a total of 22 new products and facelifts besides 12 new model year updates and 7 new powertrain options. Each of these will see entry into the Indian auto sector in the current year.
Slowdown in the auto industry came in 2012 when growth was at its lowest standing at 8% while the year 2013 was much the same with the first slump in more than a decade. Companies deferred expansion plans and retrenched a large number of workers as auto makers cut down production operations drastically.
The 2014 fiscal was no better, with car sales falling for the second straight year. Automakers such as Mahindra & Mahindra, Tata Motors, Maruti, Hyundai, Renault and Nissan are all eager to make good these losses and are increasing investment substantially to introduce new products and refreshed models so as to catch the attention of younger and more adventurous buyers
Maruti Suzuki has announced launch of a new car, facelift or refreshed model every three to six months in a bid to keep interest alive while Renault-Nissan, Hyundai and GM are all concentrating on research and development. VW and Tata Motors are moving ahead in development of new modular platforms and sharing on parts to bring down costs considerably.
via Economic Times