Maruti Suzuki India Limited (MSIL), the largest car manufacturer in India, had experienced a sharp dip in car sales this year due to economic slowdown and labour disputes. With 2011 coming to an end, it has started gearing up for the upcoming Delhi Auto Expo 2012. The mega event will help it in improving sales by launching new and facelifted models. The company was in headlines in 2011 for labour trouble at its Manesar plant that resulted in production disruptions that further deteriorated its sales position.
In addition, Honda Motors, Ford, Nissan, BMW and Mercedes-Benz have also decided to roll-out new models amidst difficult market conditions because such methods help in securing market share.
In a statement given to Financial Chronicle, Shashank Srivastava, Chief General Manager, Marketing, Maruti Suzuki India, said, “The new car launches as well as the diesel variants are driving the volume growth in the industry. In 2010-11, Maruti Suzuki’s volumes increased by about 2.7 lacs units. Out of these almost two lacs volumes came from new models and facelifts. This year the trend for the industry is similar.” He elaborate that the trend of bringing in new models is popular as these draw majority of customers.
With increase in petrol prices, Maruti Suzuki and other brands would be bringing in more diesel variants to uplift car sales. On this, Shashank Srivastava commented, “With decisive shift in customer preference in favour of diesel-powered cars, the segment shows positive rise in volumes. While April-November 2011 period saw the passenger vehicles industry registering a slight fall in sales, the diesel vehicles grew by 25 per cent and the petrol vehicles declined by about 16 per cent.”
Maruti Suzuki is eager to regain its customer base in the small car segment that was hampered by malfunctioned production processes. Thus, the company will count on upgraded models to keep afloat amid cut throat competition.
