Wednesday, February 22, 2012
By Manoj Kumawat
SUVs getting good response from car buyers even after predicted recession
Indian car industry is certainly an example of diversity and recently, surprises. On the one hand when the Auto Gurus predict that overall sales in financial year 2012 will slow down there is a striking revelation that SUVs by prominent car makers are sold out for next two months. The SUV makers Mahindra, Toyota, BMW and Audi have reportedly revealed that their SUVs are all sold out. Is this a recession in the Auto industry? On the other hand there has been a recent spur in demand for SUVs signaling that the sale of these fuel guzzlers will further boost in future. Majority of the SUV sales were in the Rs 25-65 lakh price segment.
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Experts suggest that there is a tough road ahead for Indian auto industry and the overall sales will see a downfall for the first time in the last nine years. The forecast has been made on factors such as uncertain and steep rise in fuel prices leading to disruption of family budget, high interest rates dampening sale of cars and the overall economic slowdown following bad signals from Europe and West. However, the statistics of SUV sales in India say a different story and it has yet again proved that these factors cannot dampen the spirit of buying of the young customers in India, who prefer to ride an SUV.
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As per sources, Toyota Motors is reportedly receiving bookings of over 100 Toyota Fortuner SUV everyday which is double demand than last year and there is a booking backlog of over four months on the SUV. Another example of the craze for SUVs in India is evident as the newly launched Mahindra XUV 500 has just received 25,000 plus booking applications in 10 days and is sold out for the next three months. However, with the rise in demand for SUVs there has been a slight decline in the sales of cars including hatchback and sedans compared to FY ’11.