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Yo-Yo Car Sales Trend Continue in India

Car sales analysis is a major passion for many. However, it does help car manufacturers to plan their strategies basis current trend. The deeper one goes, the greater the insights. For car buyers it's a confidence building factor. 

Car Sales Plunges in July 2011

 The euphoria seems to be ebbing. There are now clear signs of the  auto market slow down in India. After slower growth in June 2011 July delivers receding numbers. Most importantly by top 3 car manufacturers (Maruti, Hyundai and Tata Motors), who together contribute upwards of 80% of total India automobile market.

The losers are; Maruti (-26%), Hyundai (-11%), Tata (-38%), Fiat (-52%), Ford (-18%).

Rising petrol prices over time has led to a dramatic shift in consumer preferences. Even die-hard petrol fans are contemplating or promoting diesel power plants as a viable conomical and equally exciting (thanks to great improvement in Diesel technology) option over a petrol engine.

Unfortunately, most manufacturers failed to anticipate this sudden preference change and thus were caught unaware. Whilst, Maruti does have an efficient diesel engine they are constrained by capacity. Hyundai on the other hand is in the process of developing one which unfortunately is not expected before 2013. Ford seems to have had a good run last year but with growing competition they have been unable to keep up last year’s tempo.

New product launches seems to have spurred the growth for some for some of the winners;  GM with Beat diesel and Toyota with Etios Liva.

Honda has managed numbers, all thanks to a major price rationalisation of their lead model the City which finally seems to be coming back in favour after losing market to the Vento. VW on the other hand seems to have caught Indian consumers fancy thanks to aggressively priced quality products with high decibel advertising.

The gains shown by these companies to the say the least has been quite handsome; GM (33.5%), VW (151%), Toyota (98.9%), Honda (8.5%), Skoda (97,4%).

With the expected new Swift launch this month we at excardlr.com expect Maruti to post very good figures for August.

ecardlr.com also believes,  that irrespective of the upcoming festive season the market may not see growth figures like last year. The going ahead we believe is going to be tough. People in the know are already speaking of low single digit growth this year and that is a fact, most in the business are finding difficult to digest. 

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