Latest Car News in India

Thursday, October 13, 2011

By Pranjal Gera

Auto majors Honda, Toyota Kirloskar, Mahindra and Mahindra to revise approach for new launches, as demand surpasses supply

The leading auto manufacturers in India, these days are encountering atypical situation with their newly launched vehicles. And that is the miscalculation of demand by the carmakers, resulting in lower rate of production targets that directly increases the hang-around time.

To name some latest launches such as Mahindra’s Global SUV XUV 500, diesel versions of Toyota Etios sedan and Etios Liva, along with Honda Jazz; for which the revised price-tag has done the trick, are in demand more than its production targets.

Launched in September, the Mahindra off-roader has current bookings of more than 7000 vehicles that directs to a waiting period of 4-5 months. The utility vehicle king had earlier programmed to manufacture 2000 vehicles per month, but now sighting the demand will increase it to 3000 vehicles per month. According to Mr. Pawan Goenka, the Mahindra and Mahindra President- Automotive sector, the company can accelerate the capacity, but it sounds difficult on the supplier front, if each supplier increases the capacity then only the production will boost up.

As per Mahindra’s global ambitions the XUV500 was also launched in South Africa, but the plan of taking the SUV to other markets across the world was postponed, keeping in mind the home situation. Also in India it has suspended the new bookings from 11th October. The decision was taken eyeing the great response received in cities of Chennai, Bengaluru, Mumbai, Pune and Delhi.

Last month Toyota Kirloskar has made sales of 6000 vehicles of Etios sedan and Etios Liva, but the company thinks that it could have sold 2000 vehicles more in that month if it didn’t had the production limitation. As per the company the sales will move up by 45 percent to 60 percent in the upcoming months and their new plant will assist them to simplify supplies.

For diesel powered Etios sedan and Liva the waiting period after booking is of 8-10 weeks; thanks to the production constraints. Now the Japan based auto giant has commenced the manufacturing at the plant which currently rolls-out Innova and Fortuner. Another unit which produces Corolla Altis, Etios sedan and Etios liva has received the revised targets of 2, 10,000 vehicles as compared to earlier 1, 20, 000 vehicles.

Honda Siel Cars has the current order accumulation of more than 3000 Jazz cars, which manufactures 600 cars a month. Mr. Jnaneswar Sen- Senior Vice President- Marketing and Sales at Honda Siel blamed the natural disaster hit Japan unit from where the micro-chip in the car is installed; shortage of the same has increased the hang around period.

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