The upcoming Delhi Auto Expo 2012 is expected to bring some relief to the Indian automobile industry that took a backseat in 2011 due to economic slowdown. However, according to Associated Chamber of Commerce and Industry of India (ASSOCHAM), the crisis currently persisting will continue to haunt car makers in 2012 as well. Thus, it will force the automobile industry to increase prices by around 2% to 10% in initial months of 2012.
This year the sales graph for the domestic passenger car segment went down by 4% between January and November. The decrease in value of rupee against the U.S. dollar and increase in input costs will compel the auto manufacturers to hike the prices next year and that would further deteriorate the car sales graph.
According to a source, "The falling rupee and rising input costs have impacted the firm. The pressure on margins of the volume models has been the most." Nissan Motors, Audi India, Mahindra & Mahindra, Hyundai Motor, Toyota Kirloskar, General Motors and Ford are some of the auto makers that will be adding weight to the existing price tag.
As per the statement given by Bhagyesh Soneji, Chairperson, ASSOCHAM, Ahmedabad region, Indian automobile manufacturers are finding it hard to withstand the innumerable global disturbances. Slow economic growth in Japan, sluggish economic recovery in the U.S. and sovereign debt crisis in Europe are factors that are affecting the Indian car market.
Amidst this global chaos and fierce competition, Indian automobile manufacturers have started offering hefty discounts and rebates in order to enhance the falling car sales for 2011. However, Indian buyers who are expecting some good news from the auto makers in 2012 may have to wait little more than expected.
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