Launch of new cars boosting the sluggish state of Indian car market

Thursday 22 August 2013, 09:48 AM by

Indian car market has been experiencing a sluggish time over the past year, wherein sales have dropped and demand is slowing down continuously. According to the data released by Society of Indian Automobile Manufacturers (SIAM), a number of auto makers have experienced a fall in their respective sales count. The current state of the Indian economy has certainly played a huge role in impacting the auto industry. The value of rupee has been falling consistently, leading to widespread price rise across the country. As a result of this, car makers are also facing the pressure of increased cost inputs and have raised the rates of vehicles to maintain profit levels.

Launch of new cars boosting the sluggish state of Indian car market |
Launch of new cars boosting the sluggish state of Indian car market

On top of this, buyers have been quite reluctant in purchasing cars, owing to the rising fuel rates. However, there are a few bright spots in these unfavourable times as some newly launched cars are staging the revival. Some of these vehicles include Honda Amaze, Mercedes-Benz A-Class, Maruti Suzuki Swift DZire, Renault Duster and Ford EcoSport.

By launching its first diesel car, Honda made a dedicated effort to target the masses, an attempt that has been successful to a great extent. The Amaze, a compact sedan, has managed to create a tremendous impact in India, generating high volumes of sales for its Japan based car maker. Honda, through extensive research and analysis, planned a holistic brand redevelopment program in India, wherein it created a name for itself among price sensitive buyers. Statistics have revealed that Honda sold around 2000, 5000 and 6000 units of the Amaze sedan in the months of March, April and May, respectively.

Launch of new cars boosting the sluggish state of Indian car market.

The compact Sports Utility Vehicle (SUV) segment has been on a rise in the India. Due to the presence of production facilities in India, foreign car makers have been able to adopt an aggressive pricing strategy for their compact SUVs. The success of this segment began with the launch of the Renault Duster, which has literally revived the fortunes of its France-based manufacturer. According to reports, a major chunk of the firm's sales is formed by the Duster, which indicates its impact. Seeing the rise in this segment, Ford, the American automobile giant, launched the EcoSport utility vehicle in India. Surpassing expectations, the Ford EcoSport has taken the market by storm by receiving around 30000 bookings in a space of just 17 days.

Surprisingly, the A-Class compact car from German auto maker Mercedes-Benz also figures on the list of vehicles that have been boosted the performance of the Indian market. The two variants of Mercedes-Benz A-Class are named A180 Sport and A180 CDI. There are a few reasons why this car managed to perform well, such as an aggressive pricing, brilliant fuel economy and the firm's strong promotional campaign. Sources claim that Mercedes-Benz India received around 400 bookings for the A-Class in a period of 10 days after its launch.

Industry experts are of a view that the launch of several new vehicles in coming months is expected to improve the condition of Indian auto market. With festive season approaching, car makers are hoping to make best use of the time to improve the level of their revenue generation.

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