What do auto companies do to battle a speedily worsening slowdown? They first request excise duty reduction. Then they ask for interest rate reduction. Then they refuse cutting prices. Then they decide to postpone new car launches. Then they reverse their decision and line up a string of new car launches. Then they start giving out cars for free. Then they close plants. And then… they turn to the Almighty.
It’s no secret that the automobile industry is in troubled waters. The latest is it is gearing up for new launches in the hope of driving up car sales. While December is expected to be a not-so-profitable month, industry analysts are looking to the New Year to bring in some cheer.
Big players like Maruti are working extra hard to make up for the extra steep decline they faced in the past month. The Maruti A-Star, launched yesterday, is expected to earn back part of the market share that Maruti’s small cars such as the Zen Estilo lost to Hyundai’s i10 and other competitors. Fiat and Hyundai too will be bringing out their new cars, the Linea and the i20 in December and January respectively.
Industry pundits are hopeful of the new entrants generating improved sales numbers, but they warn against having unrealistic expectations and counsel patience. A complete revival may take a long time coming.
The good news for India is that while one-time industry emperors like GM are on the verge on bankruptcy in the US, their Indian units are still upbeat about the future. Every new step that auto companies take in the country these days is interpreted in context of the grim global scenario. The new made-in-India-car trend is also thought by some to be a way through which carmakers hope to gain in India what they are losing elsewhere – a growing market, and profits.
Here’s hoping the good times are back soon!
