Gain and pain in car sales
Gain and pain in car sales
New Delhi, Sept. 1, 2011: New models helped Ford India, General Motors and Toyota Kirloskar to record strong sales in August, despite a sluggish domestic car market that saw the big three players, Maruti, Hyundai and Tata Motors, report a drop in sales.
Ford reported a 9 per cent increase in sales at 8,914 units, while General Motors' sales grew 14 per cent to 9,050 units and Toyota Kirloskar Motor's sales jumped 83.82 per cent to 11,693 units in August.
Ford's Fiesta, General Motor's Chevrolet Beat and Toyota Kirloskar Motor's sedan Etios and hatchback Liva have been able to push sales upwards in an overall sluggish market, said analysts.
However, car makers are not rejoicing yet. "Although we have registered a 14 per cent growth, primarily driven by the new Chevrolet Beat Diesel, the market continues to be sluggish because of the repeated hike in interest rates and fuel prices," said P. Balendran, vice-president, GM India.
Maruti Suzuki India posted a 19.21 per cent lower sales last month, despite launching a variant of Maruti's most-sold car ' Swift ' as production cuts at its Manesar factory disrupted sales targets.
Hyundai Motor India reported a 6.7 per cent decline in domestic sales at 26,677 units.
"The market continues to be tough and there are no signs of recovery in the immediate future. The rising fuel prices and interest rates have been instrumental in this sluggish market trend," said Arvind Saxena, director (marketing and sales) at Hyundai Motor India.
Tata Motors also sold only 16,829 passenger vehicles in August, which was 33 per cent lower than last year.
Sandeep Singh, managing director (marketing) at Toyota Kirloskar, said their latest offering Etios and Etios Liva and flagship model Innova led the growth.
"Auto makers need to relaunch and refurbish models pretty frequently to retain customer interest, especially in a market where demand is slow," Abdul Majeed, leader for automotive practice at PricewaterhouseCoopers, told The Telegraph.
Sales had surged 30 per cent in 2010-11, the fastest since 1999-2000, as customers took advantage of easier availability of low-cost loans, introduction of new models and rising incomes in an expanding economy.
Meanwhile, scooter and bike sales were high in August, riding on the back of new models and a lower impact of the interest rate hike.
Source:
Gain and pain in car sales - Yahoo! India Finance