Latest Car News in India

Monday, July 02, 2012

By Manoj Kumawat

Mahindra zooms ahead with the XUV 500, Tata succumbs to low demand

Two things seem to have helped the Indian SUV maker Mahindra in putting up exceptional sales chart this June even if the market is reeling under crisis. With it, Mahindra XUV 500 has been the star performer along with Mahindra Bolero and all time hit SUV Mahindra Scorpio that has also complete its decade long inning in India recently. With this, Mahindra passenger vehicle sales grew by 28 cent in June this year compared to June last year. On the other hand, another prominent SUV maker Tata has reported year on year decline of over 22 percent in sales.

Mahindra XUV 500 Pictures

See More Mahindra XUV 500 Photos Get Mahindra XUV 500 Price

Amidst this slowdown, almost all the car makers are going pillar to post in search of car buyers who seemed to have vaporized following high interest rates, high petrol prices and uncertain economic conditions. Meanwhile, the slowdown seems to have been for budget segment or the small cars only as the SUV sales in India is picking up gradually. Also, there are three SUVs coming shortly that will be changing the overall face of the SUV and car buying trend in the country. These are – Renault Duster, Maruti XA Alpha and Ford Ecosport. Where Duster is launching in the coming days, Ecosport and XA Alpha are rumored to be launched during the festive season.

Mahindra XUV 500 Pictures

See More Mahindra XUV 500 Photos Get Mahindra XUV 500 Price

Thus unaware of the bad weather that has set in the car industry currently, many car makers are taking high risks while some have withdrawn their plans while some have halted the production of cars in India. It is said that Tata sales of Tata Indica and Tata Indigo have plunged due to the severe competition with Toyota Etios Liva and Toyota Etios sedan. The sales of Tata Safari, Tata Sumo and Tata Aria have seen an increase of five percent. Toyota sold 22 percent more cars this June compared to June last year.

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