After registering massive growth for two consecutive years, the Indian automobile industry is showing signs of slow-down. Car makers are expecting sales growth to slip below 10 percent this fiscal. The leading car makers in the country including Maruti Suzuki, Hyundai Motors, Tata Motors, Toyota and Kirloskar Motors have already confirmed that there is a dip in the number of customer enquiries and sales in last two months.
In past few months, the cost of ownership has increased on many fronts including the increased car prices, higher interest rates and the increased fuel prices, which may be causing this slow down.
As per a recent statement given by Maruti Suzuki Managing Executive Officer Mayank Pareek, "The customer walk-in at our dealerships has dropped.” He added that there is a significant change in the mood of customers as inquiries for cars are not translating in actual sales.
In the financial year 2010-11, the Indian market became the fastest growing car maker in the world, registering a growth of 30 percent, leaving its closest competitor China at second place.
While commenting on the changed customer behavior, Hyundai Motor Director, Marketing & Sales, Arvind Saxena said, "Customer's perception is changing and the rising cost of car is playing spoilsports."
