The sluggish economy, growing uncertainty and lack of business reforms has cast a gloom over business opportunities and growth in India. Almost all business activities have suffered due to these factors and the car industry, which is a very capital intensive market, has also suffered as well. During the economic slow down the buyers, particularly those from the middle class, are likely to save their spare cash and defer buying capial products, such as new cars. This uncertainty is likely to continue till the general public becomes sure of the future policies of those who are in charge of governing the country. In this dismal scenario many car manufacturers have shown negative growth or decline in sales figures. The sales of ‘Toyota’ models also declined substantially by nearly 19 % Percent in ‘June 2013’.
‘Toyota Kirloskar Motor’ or ‘TKM’ were able to sell only ‘13,805’ vehicles during the month of June this year while they sold nearly ’17,140’ units last year in the same month. The overall figure is ‘13,805’, this also includes export of ‘2,795’ ‘Etios’ models. The figure for the sale of vehicles inside the country is 11,010 cars in the month. Last year in June, the company sold nealy ‘14,700’ vehicles.
A senior executive from the company has said that the decline in sales growth is due to many factors, including economic slow down and the tendency of the prospective customers to hold on to their spare cash. He said that there is a marginal improvement in the sales figures in June as compared to the sales in May. He said that the strategy of the company is to keep a ‘low inventory’ both at the factory and dealer level. He also said that; however, they believe that the sales will improve during the coming festive season. It is hoped that Toyota will see an improvement in the sales of their vehicles in the last months of the year.