Car sales have gone down at the beginning of New Year. The reasons may be high price of fuel, shortage of disposable cash, high inflation rate and general uncertainty of future. In the times of uncertainty people generally avoid big purchases like buying a new car. Sales in the Indian motor sector went down drastically in February this year. Some of the motor manufactures saw plummeting sales; Tata, country’s third largest manufacturer of cars saw its sales going down drastically in February 2013.
The sales figures show a decline of nearly 33 per cent from the cars sold last year. The total sales were 61,998 vehicles in February this year, while in the last year the company sold 92,119 vehicles. The figure is more depressing if we break it down to passenger and commercial cars sale. The total sale of passenger cars was 10,613 in February this year while the sale of the similar vehicles was 34,832 last year; a drastic decline of nearly 69.53%. In the commercial motor division, the sales figure was 47,389 cars sold in February 2013, while in February 2012 it sold 51,872 vehicles.
The drop in percentage is 8.64%. In the export market as well there was decline in sales figures, 3,996 as compared to 5,415 last year. Here as well the decline is very pronounced; a little above 26%. Overall analysis shows that sales dropped on the passenger cars both at home and abroad. However, unlike Tata motor some of the other car manufacturers, Mahindra and Mahindra and Hyundai Motor India Limited (HMIL) improved their sales in February 2013. Tata motors needs to analyze the reasons for the shortfall in sales and set in motion policies that would help it arrest the plummeting sales figure.
The buzz in the market is that Tata may slash the prices of some models, like Indica and Indigo to arrest the sharp decline in sales figures. Reports have appeared that prices may be cut down between Rs.20, 000 to 50,000 to attract customers to opt for Tata cars. It is obvious that the company needs to take urgent measures to arrest the downward trend in sales of the car.