Car Articles

Read articles on cars and car industry. Get fully updated on all information related to cars. Read exciting happening in the Indian and Global Car industry, tips to help you and more...

Old Articles

Dark Clouds Hover on Indian Auto Industry

Everyone notice the outer glam of the Indian auto industry shining with amazing models but people are not aware of the other face of the auto industry which is going through crisis with extreme slow down in sales for the first time in three years. The domestic sales dipped by 1.71 per cent in July as a result of high interest rates, inflationary pressures and soaring fuel prices.

A close look into the sales report will give a clear idea of the overall sales figure. To start with, in July this year 87,724 cars were sold compared to 89,250 units in the corresponding month last year. The passenger car sales were doing fine in the beginning of the fiscal resulting in 11 per cent growth. Some of the key factors that affected the passenger car sales are finance, future price revisions, excise duty and fuel cost.

Now the industry wishes better sales during the coming festive season. Also, with the entrance of new models like the Tata Nano and Maruti Suzuki A-Star, the car industry is anticipated to see a double-digit growth. However, analyst predicts not much growth as the above mentioned key factors will continue to affect the auto industry for some more time.

Maruti Suzuki saw a flat growth with the sale of 72 more cars domestically compared to previous year. The second largest passenger car manufacturer the Hyundai Motors also experienced only 0.4% growth and is expected to slope down further.

There was a sales decline of nearly 14 per cent for the Tata Motors and now the company banks all its hope on the ultra-cheap car the Nano. Another Indian player who was reported a fall of 16 percent in sales is Mahindra & Mahindra (and also Mahindra- Renault).

Though this is just a temporary slope in the auto industry but it has left a great impact. Every car manufacturer is eying on the festive season to cheer up their sales figure. The sales may go very high giving them a reason to smile but what will happen once the festive spell comes to an end. Will the auto industry carry the same growth or there will be some kind of fall? Now time can review the future sales of the Indian auto industry.

» Read more Articles On Auto Industry

» Read more Articles On Car Manufacturer