Which cars can drive Indian auto industry to safety
The month of April or for that matter the past few months have not been noteworthy where auto sales in the country are concerned. Markets have remained unresponsive and demand has been downcast and reasons for this is due to severe economic constraints, higher borrowing costs and rising fuel prices all of which have worked in tandem to adversely affect auto sales in the country.
Top auto manufacturers in the country including Toyota Motor Corp, Ford Motor Company, Hyundai, Suzuki and GM have all recorded either diminished or marginal sales, way below expectation during the month of April 2013. Conversely, Honda Motor Company and Renault SA have posted positive results during the month, due to their new vehicles launched. Companies are also concentrating on launch of new models, upgrading existing cars, or introducing diesel engine vehicles to boost sales volume.
The recent Union Budget too has brought its own woes in its wake. A higher 3% increase on SUVs to 30%, has taken SUV makers by surprise. Companies such as Tata Motors, M&M and Toyota Motors have had to increase SUV prices. Passing on this added tax to customers is a move which could adversely affect demand in a segment that is already in a slow mode.
While the luxury auto market is holding it’s own, most automakers in other segments have taken a hard hit. However, hope isn’t lost as Maruti is almost always the first to add to numbers. No doubt the Maruti Dzire compact sedan continues to be a contributor with about 18,000 units to account for each month. After launch, the Honda Amaze has secured increased bookings, and will continue to deliver close to 5k units each month in the short run. Renault Duster continues to be untamed, and is trotting on having sold 5362 units in April 2013. This week, General Motors will launch their Chevrolet Enjoy MPV here. Soon after, the Mahindra Vibe hatchback (sub 4 metre) is to be launched, and in June the oft mentioned Ford EcoSport urban mobility vehicle will be seen.