Indian economy continues to slow down; as seen very clearly in the recent down ward spiral of Indian Rupee against US dollars, and there is no signs of improvement in the future. This is not a good news for Indian car manufacturers as sales of cars remain very sluggish. The customers are simply holding on to their spare cash instead of buying expensive capital products. This trend, which started in December last year, shows no signs of improving in the fifth month of thos year as well. The trend is a cause of concern for the Indian car manufacturers. A senior official of ‘SIAM’, the official organization expressed the concern on the continuing trend by saying that even in the past there was slow down in the sales of cars but eventually this trend was reversed and sales picked up again. However, the recent scenario shows no signs of reversal and this is worrying both car manufacturers as well as the businesses connected with it.
The figure for the sale of cars in May 2013 clearly shows the down ward trend in sales. The consolidated sale of passenger cars was only ‘1,43,216’ in May this year while the sale for last year for the same month was ‘1,63,222’ units. This shows a clear down fall of twelve point three percent. However, the sale of commercial vehicle is not affected by the slowing economy and shows a substantial growth.
Almost all car manufacturers were affected by slowing economy; however, both ‘Maruti Suzuki’ and ‘Tata Motors’ showed clear signs of negative sales. Maruti has announced that they are going to close their manufacturing units for 8 days in the month of ‘June’ because of swelling inventory both at their factories and with dealers. There is an apprehension in the market that this slow down may lead to lost jobs in the industry. However, the sale of commercial vehicle is still slightly positive. It is hoped that the downward trend of economic growth improves in the coming months of this year and in turn would help in growth of sales of vehicles in Indian car market.