2013 Auto
sales in India becomes a topic of Worry for all auto majors of India.
The tough
tomes really seems to be knocking the doors. And it became a big reason for
worry for all auto majors of India as for the first time auto sales dropped 6.7
percent in 10 years. Auto sales in India were on boom from last two years with
the whole market progressing by 30 percent every year. But during the last
financial year the market started getting influenced by the economic slowdown
that was gripping the Indian economy from last some time. Some of the other
major reasons being blamed for this sluggishness are high interest rates,
fluctuating value of Indian currency, and constantly rising fuel prices and car
prices. As per SIAM,
the total sales during the FY 2012-13 were of total 1.89 million vehicles while
the same figure stood at 2.03 million in 2011-12. The word is on street that
this decline and sluggishness in market will continue till interest rates don’t
come down and the economy picks up its speed again.
India was
recently the fastest growing car markets in the world. But now several auto
majors are holding on their plans of expansion in India given the present
condition. But there is other side to this situation as well. Wherein the car
market went down, the utility segment picked up well with a high growth rate.
Indians inclination towards these vehicles can be clearly seen as more and more
auto majors are plugging in to come up with their own range of utility
vehicles. The latest ones being Maruti similarly there are some utility vehicle
makers that have now been trying their hands in the car market the biggest one
among them is Mahindra and Mahindra. It is being expected that with launch of
new vehicles like Honda Amaze, Ford EcoSport, and others the market is going ot
pickup its pace again and may be by end of this financial year again pick up
the pace that had been left out an year ago.
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