Monday, November 21, 2011
By Pranjal Gera
Sighting decline in domestic demand, automakers now rely on overseas selling of cars
In order to counter the diminishing demand for petrol run automobiles in the domestic sector this year, the automobile manufacturers are considering the overseas selling to improve their overall performance in terms of sales, irrespective of domestic and exports. Last year the auto sector observed an amazing performance in the domestic sector, until the rise of petrol prices by the Oil Marketing Companies (OMC) in the very first month of 2011. The situation was worsened for the consumers when RBI announced an increase in the rate of interest this year.
The only spark or encouraging factor that was noticed this year was the rise in demand for cars powered by diesel, on the backdrop of hiking petrol costs. The sales numbers fell by 1.8 percent between April to October month and on contrast in the same duration the overseas selling strengthened an upward movement of around 19 percent, as stated by Society of Indian Automobile Manufacturers (SIAM).
These figures were totally opposite last year in the same period, with domestic sales growing by 33 percent that left the overseas selling nowhere, as it secured only 2 percent of entire sales. The focus on exports by the carmakers indicates that majority of car companies are striving in order to cope up with the loss it rendered in sales this year.
American auto major in India, Ford Motors is planning 20 percent sales in overseas by the end of this financial year. The car manufacturers in the country are now looking for the markets outside India where petrol powered vehicles are still in demand.
The government of India is mulling over an increase in the excise fees on diesel run cars that may assist to boost the sales of petrol cars in the country.