The automobile market in India continues to be sluggish.
Maruti Suzuki, Hyundai, and Tata Motors – the three top ranking manufacturers – have reported a fall in sales during August. The rise in fuel prices and increased interest on car loans seem to be the reason for the drop in sales.
According to Maruti Suzuki, it sold 77,086 units in August 2011 compared to 92,674 units in August 2010 – representing a 16.8% fall. This is the third consecutive month of falling sales for Maruti Suzuki. The problem of fuel prices and interest rates has been compounded by the strike of labour at the Company’s Manesar plant.
In the case of Tata Motors, a steep drop in the sale of ‘Nano’ pushed the sales of passenger cars down by about one-thirds.
The sales of Hyundai Motor India are rpeorted to have dipped by 6.7% in Auust 2011 – compared to the sales in August 2010. Arvind Saxena, Director (Marketing & Sales), Hyundai Motors India, said: “The market continues to be tough and there are no signs of recovery in the immediate future. Rising fuel prices and interest rates have caused this sluggish trend.”
But other prominent manufacturers like Honda Siel Cars, Volkswagen, Toyota Kirloskar, General Motors, and Ford have reported a rise in sales. New models launched during the period and slashed prices are believed to have offset the inhibiting factors faced by the top three mentioned above.
Honda Siel Cars India have achieved their highest sales for August during any year. Their sale of 6907 units in August 2011 represents a 25% growth over the sales in August 2010. According to the company, “This remarkable growth in sales is fuelled by the sales of Honda City. The company sold 5,819 units of Honda City in August, registering 35% growth from the 4,251 units sold in August 2010.”
The sales of Toyota Kirloskar in August 2011 rose by 83.8% over the corresponding figures for August 2010. The launch of Etios and Liva have been substantially responsible for this dramatic rise. Their impact has been greatly furthered by the continuing strong demand for Toyota Innova.
The diesel variant of Beat seems to have helped General Motors report a rise of 14% in their August 2011 sales compared to those of August 2010.
While no specific reason has been identified for the rise in the sales of Volkswagen India, the company has reported, in August 2011, a rise of 72% over the figures for August 2010.
The sales of Ford India in August 2011 have witnessed a rise of 9% compared to the figures for August 2010. The rise is attributed to the new Ford Fiesta and Ford Figo.
The overall scenario suggests that it should be possible for the automobile manufacturers to reverse the ownward trend attributes to fuel prices and interest rates by effective marketing strategies like price cuts and dynamic development through launch of new models.
