Friday, December 21, 2012
By Manoj Kumawat
Car sales output declined from April-November: SIAM
The passenger car sales output is not going according to what it was expected it to be. The figures have declined by 1% year on year to about 15.9 lakh during the time frame of April to November 2012. The main reason behind this decline is the slow economic growth and soaring interest rates. The sky-rocketing fuel prices, disappointing GDP growth rate and high material cost are also few reasons behind this downfall. From a total of 16 car makers, nine of them have reported a fall over in the production of cars and three companies have mentioned a very slight increase in production, which is even less than 4%.
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Merely four companies have been doing nicely in the industry. The companies, which saw a downfall in the production of cars comprise of Fiat, Mercedes Benz, General Motors and Volkswagen. If we consider the figures, Fiat India saw 47% of drop in the output, Mercedes saw 26.8%, General Motors India witnessed a plunge of 23.7% and Volkswagen India saw 23.2% downfall. This huge fall continued in spite of new car launches from these car makers like GM launched Chevrolet Sail UVA, Mercedes came up with Mercedes Benz B Class and Volkswagen brought special editions of Volkswagen Polo and Volkswagen Vento.
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On the other hand, the car companies that managed to perform well during this time frame comprise of Renault India that saw a growth of 616% (thanks to Renault Duster), Honda India saw 83% of hike in output, while Toyota Kirloskar Motors and Nissan Motors saw 19.8% and 13% growth respectively. As per SIAM, the passenger car production in the country was growing by the rate of more than 17% during last 10 years, but this decline came out to be disappointing. Moreover, to amplify the production output of the car companies, numerous steps are being taken with regards of Automotive Mission Plan (2006-16) along with foreign trade policy that provides some bonus incentives. Hopefully, the market condition will go up in future and make the progress soon.