Auto sales in india may be soaring but the market is also getting equally competitive. Carmakers are now trying to push individual model sales figures as the market becomes more fierce every day. Car makers have scaled up product promotion expenditures including product development expenses. This means that the growing competition bring good news for the indian customers as they get models with more value for money.
Even for the established products, the car makers need to keep the interest alive for their products. An independent research from CRISIL indicates that while car sales in india have gone up by 14 percent in India, unit sales per model in India has declined by up to 12 percent. A new small car now sells around 13000-15000 units annually as compared to 20,000-24,000 units sold in a year three years back. One of the most important reason attributed to the decline is number of choice available in the market with new players entering the market each year.
“Domestic market dynamics have changed and a new launch does not guarantee success with a bump up in sales,” said a senior executive with Volkswagen requesting anonymity. In spite of the decline in per unit sales, the developing market in india is still quite alluring as compared to the tough situations in developed market. Thus, established car makers like Tata Motors, Maruti Suzuki and Hyundai Motors are launching refurbished models or bringing in new schemes to keep the customer interest in their brands.
