Friday, May 03, 2013
By Anil Jangid
Car sales down by up to 8 percent in April, new cars to trigger sales
Cars have started piling up in stockyards of car makers, dealers are facing the heat of a slowdown and overall auto sales in India are down by up to 8 percent. This is what Indian auto industry is today. Looking at the recent sales reports made public by car makers including Maruti, Hyundai, Tata, Toyota and others, it seems that none of these managed to enter into the positive side of sales in April this year. Already, the industry has faced the worst ever fall in sales in a decade. Mahindra too had posted sales to be up by only 2 percent and except Mahindra Quanto all its cars have reported a slid in sales.
In such a grim situation it seems that it is very hard for car makers to continue producing cars at the current pace and it is possible that some will soon declare production holidays or increase the maintenance days. However, there are some positive indicators coming from this week in May after the price of petrol has corrected by Rs 3 per litre. It is believed that the reduction in the price of petrol will certainly affect petrol car sales in the county. Experts also predict that soon the gap between petrol and diesel price will narrow down and at such a juncture, petrol car sales will surge as compared to diesel, petrol is cleaner and petrol cars require less maintenance.
In addition to this, launch of new cars in India will also bring some activity in the market. Cars that could bring high volume sales in the industry are soon to be launched Chevrolet Enjoy in the MPV segment, Ford Ecosport, Nissan Datsun cars and there will be some surprises as well. In all, it seems that these cars will help the industry to recover to some extent and if the current trend of correction of petrol price continues, it will surely trigger car sales in the market.