The domestic car market in India continues to be plagued by slow economic recovery both in the world and in the country. The economic scenario in the whole world is connected and it is not an exaggeration to say that an economic recession in one part of the world has a profound effect on all corners of the world. In this gloomy scenario, people would like to hold on to their spare cash, and the car manufacturing companies suffer most because generally customers would like to defer buying new cars till the economic situation improves. Therefore, the news that the sales of vehicles manufactured by ‘Toyota Kirloskar motor’ is showing a downward trend this year in the first quarter is not surprising. Nearly all car manufacturing units, both domestic and foreign, have suffered slow sales due to the economic downturn.
The company was able to sell only nine thousand seven cars in India. The sales figure includes its much publicized model, ‘Etios’. In the last year the sales figures for the same month were fourteen thousand three hundred and seventy eight units, thus the decline in growth is nearly thirty seven Percent. The figures for this month also include one thousand four hundred forty nine ‘Etios’ cars which were sent to ‘South Africa’. The overall sales figure for April is ten thousand four hundred and fifty six vehicles.
Giving reasons for the sales decline a senior management executive said that it is not surprising to have a sluggish sales because the economic scenario has not improved. He said, that they are now vigorously concentrating on lowering the ‘inventory’ level both at the factory and dealer levels. The low sales may be the result of the introduction of new cars in the market by other car manufacturers as well. However, strange as it may seem, surprisingly the ‘Japanese’ car manufacturing giant has shown an improvement in its sales for the same period despite the economic slowdown.