The year 2013 is about to come to an end and a majority of car makers in India would be eagerly waiting for the same to happen. It has been a challenging year for the car industry in general due to sluggish demand, dropping sales and rising cost inputs. Due to all this, car makers have been struggling to sustain revenue levels in the country. Despite this, there were some incidents, which can be termed as extremely positive and ideal for a better future. Like every year, 2013 has also seen its share of controversy, product launches and showcases. While many incidents and events took place, some have overshadowed others by their magnitude. Given below are some events that have shaped the course of Indian car market in 2013.
No one can possibly argue with the fact that the economic crisis in the country has affected car market more than anything else. According to some reports, 2013 has been one of the worst years for car makers in terms of sales and growth. Month after month, companies in India released figures suggesting that they had seen a fall in sales as compared to the same period in 2012. The value of Rupee with respect to the Dollar depreciated continuously, thereby resulting in widespread price rise. This directly raised the cost pressure on car makers, who had to increase prices of their cars. As a direct result of this and rising rate of fuels, demand dropped significantly, forcing production stoppages in order to prevent inventory pile-up. Things have improved slightly in the second half, mainly due to the onset of festive season, which witnessed a high number of launches.
Some incidents that happened in 2013 did a lot of damage to the reputation of Indian car market in general and a few companies in particular. A high number of vehicles were recalled by several car makers due to defects in specific. However, the most shocking incident involved General Motors as it recalled over a lakh units of Chevrolet Tavera. It was not the recall but the admission by the company regarding violation of testing norms that stunned everyone. Numerous strict actions followed this recall, wherein some top officials were sacked and a committee was set up by the government to look into the matter. Some of the other companies that have recalled vehicles in 2013 are Ford and Maruti Suzuki. Industry experts have criticised this practice, demanding stricter norms as far as testing is concerned.
Even though 2013, mainly, has been about challenges and adverse conditions, there are many positives, which can lay a platform for the future. Honda, the Japanese car maker, reinvented itself as a brand by introducing the Earth Dreams diesel technology. After facing a lot of criticism of not having a diesel car to its portfolio, Honda answered its detractors in a strong way by launching Amaze, a compact sedan that has taken the market by storm. Experts all over the world have praised the efficiency of the i-DTEC diesel engine, a lightweight unit that ensures excellent power and performance levels. Not wanting to let the momentum slow down, Honda recently unveiled the next generation City sedan, which, for the first time, will come with a diesel variant.
It is a known fact that hatchbacks rule the market in India, something that statistics completely quantify. However, the compact Sports Utility Vehicle (SUV) segment can be termed as the most popular as far as 2013 is concerned. Renault Duster, launched in 2012, laid an excellent platform for this segment and its success propelled other car makers to launch their own compact utility vehicles. The introduction of Ford EcoSport took things to another level, raising the demand for such cars in India. EcoSport and Duster, fierce rivals, have single-handedly kept their respective manufacturers afloat in the Indian market amidst challenging conditions.
Even though players in the passenger car segment have struggled to make ends meet, luxury vehicle manufacturers have registered growth figures. 2013 has seen the launch of a number of high-end cars from makers like Rolls-Royce, BMW, Audi, Bentley, Porsche and Jaguar. However, it is Mercedes-Benz that has stolen the limelight from all other firms and silenced its critics. The brand with the three-pointed star labelled 2013 as the 'Year of Offensive' for the firm in India and it has lived up to these words completely. Taking first mover advantage, Mercedes-Benz launched low-cost models like A-Class and B-Class, which have performed really well. Apart from this, it also introduced models like E-Class, GL-Class SUV and E63 AMG, all earning praises from pundits.
To put things in a nutshell, 2013 has almost entered its last month and it would be safe to say that it has been highly eventful. Although this year was poor in terms of figures and facts, it showed the resilience of auto makers and their ability to adapt to challenging conditions. Also, many new concepts, models and strategies came into foray in 2013, which are likely to be the ways of the future.
