Indian automotive industry seesawed innumerable times during the last 12 months, making it one of the most unpredictable years in the history. In spite of continuous rise in fuel prices, higher interest rates and an overall dismal economic condition, automotive sector experienced bounteous car launches during the past 12 months.
There were 77 car launches in India, taking into account all the car segments and majority of these cars was below Rs. 20 lac cars. The luxury car segment witnessed commendable growth. The year also saw highly admired brands like Ferrari, Aston Martin and Maserati establishing themselves in India. One of the most lucrative car markets across the globe, Indian automotive market saw only one entry in the non-luxury car manufacturer category.
In the dampened market scenario, all the compact car launches failed miserably. Surprisingly, Maruti Suzuki India Limited, India’s leading car maker witnessed downfall by 18.5% on a year-on-year basis. Similarly, other car makers also faced the vows of slowdown of the Indian economy. The increasing petrol price scenario turned consumer preference towards diesel cars. Extent of demand for diesel cars is so significant that Indian Auto Expo 2012 is expected to strengthen market sentiment, which will provide an opportunity to the manufacturers to impress their target audience.
In a nutshell, the year 2011 was year of highs and lows. The automotive industry of India received mixed response, as passenger car market grew in terms of product range, whereas sales performance of all the car makers suffered amidst unfavourable economic scenario.
