Figures for domestic sales of cars in India for the month of November in 2013 were revealed recently. To say the least, things are not looking good for manufacturers of passenger cars in India as they have been struggling to generate decent revenue levels. A number of auto makers in the country have reported a fall in domestic sales. Surprisingly, this list of companies includes big names that usually perform well, such as Maruti Suzuki, Hyundai, Tata Motors and Mahindra & Mahindra. Industry experts feel that this trend is not a good sign for the future as demand is likely to remain sluggish in the country. Things had got slightly on track for companies in the month of October and firms were capitalising on November to register good sales. However, macro-economic variables have not been in favour of the market, thereby leading to a fall in sales.
On one hand where companies like Maruti Suzuki, Hyundai and Tata Motors have performed poorly, Ford and Honda have enjoyed an excellent period. In fact, Japanese car maker Honda has been the top performer as far the Indian market is concerned, recording a growth of around 151 per cent. Amaze compact sedan has performed beyond expectations and has a major share in Honda's sales for November. The main reason for the success of this model has been the introduction of i-DTEC engine. American car maker Ford has also managed to do well due to the success of EcoSport compact Sports Utility Vehicle (SUV). However, it must been noted that the performances of Honda and Ford are solely based on individual models. If one was to take out Amaze and EcoSport from their respective portfolios, the figures would look completely different.
The downfall in the Indian car market is so widespread that even the leading car companies like Maruti Suzuki, Tata Motors and Hyundai have reported decline in sales. In the sales figures released for November 2013, all three companies reported a decline in domestic as well as total sales. Things went even worse for Indian home grown major, Tata Motors in November 2013 as it reported a 39 per cent dip at 40863 units in domestic demand, the lowest for the company in three years. While for Maruti Suzuki, the demand for vehicles has dipped considerably in almost each segment. However, the lone support for the leading car company came from the small car segment, which managed to grow by 3.7 per cent. Apart from the domestic sales, the exports also declined for major companies that include Hyundai which registered a 22.9 per cent fall in the number of vehicles imported.
After the festive season, many presumed that things would soon take a turn for good in the Indian car market but the dismal show by major car manufacturers continued. However, experts are now pinning hopes on 2014 for the revival of domestic market as many new models are expected to arrive in the country.
