Wednesday, September 28, 2011
By Pranjal Gera
Fewer second car buyers, but more first car buyers this year
Recently, Indian Automobile market is being hit with bad news almost everyday. The increasing interest rates and constantly rising petrol prices have put a negative impact on the automobile market, and the buyers are keeping from buying new cars. According to car companies, 1.5% less cars have been sold in the past five months, compared to last year's same period. Maruti Suzuki India's Chief General Manager, Mr. Shashank Srivastava said that the first time buyers are not stopping at all, but the slowdown and increasing prices and running costs are keeping the second car buyers from buying them. Till last year, buyers were buying second cars and or, getting their existing ones replaced. This is, however, no longer the case. The increasing prices and rising interest rates are hampering the automobile market and also, the economy, with reduced buying by the citizens. India's largest car manufacturer Maruti Suzuki is also facing the same problem and there is a significant fall in sales figures.
However, Hyundai Motors has registered 55% increase in the sales for first time buyers. Tata Motors is also enjoying increased more first time buyers, with Tata Nano being their first choice. The automobile industry has witnessed 55 percent increase in first time buyers, which was earlier 20 percent.
The demand for Diesel cars has increased substantially during the past few months. The increasing difference in the prices of Diesel and Petrol is main reason for the rising demand of diesel cars. As the present situation is, this demand is expected to further increase in the future.