There is a very significant shift in Indian automobile sales scenario. The industry is witnessing unexpected growth in its sales and as per last month’s sales records the industry has witnessed a record growth. Monthly car sales in India surged to an all-time high in August as lower borrowing costs, introduction of new models and forthcoming festivals in an expanding economy lifted demand for cars from leading automakers in India including Maruti, Hyundia, Tata Motors and Ford India.
On the other hand, auto exports from India fell by 7 percent as car makers shift their focus to meeting the rising domestic demand and the approaching festive season. As per the numbers released by the Society of Indian Automobile Manufacturers, in August, the car exports were just 37,952 units, as compared to 40,901 units for the same month previous year. The export market is at a low profile, especially in Europe, and companies like Hyundai and MSIL are looking for new shores to market their products.
Moreover, auto makers in India also face a capacity crunch where companies like Maruti, Volkswagen and even Ford are not able to supply their popular models on time. Maruti has already announced that it will build a new plant at its Manesar facility to produce an additional 250,000 units but Volkswagen has declined any change in its production plan to meet the demand. Ford has also started yet another shift at its Chennai plant as its small car Figo’s sales crossed the 40,000 mark.
