Wednesday, December 29, 2010

Car Sales In India Droppes

Despite huge schemes and offers announced by the car makers, the Indian customers are not wooed yet and the result is the slackening in the Indian cars sale. Two reasons are attributed for low pace of indian car sale – poor offer from the companies and bulk volume of purchase during the festival season.

To quote a few, Maruti Suzuki is offering Rs20,000 for its Alto and Rs12,000 for its refined WagonR which seems to be lower than the one offered last year. A Delhi based Maruti dealer exclaimed that this happened to be the highest offer from a car maker yet is lower than the previous year- even to the extent of Rs38,000 cash incentives. This happens in spite of the growing scene in the Indian car industry – 30% rise- to race against China. The actual rise of car sale is 32% (12.66lakh units) till last month for this fiscal and the trend has suddenly changed now a days. The annual sale volume is high for every year but the same for the monthly basis is fluctuating. The comparative sale for October was 1.82 cars against 1.61 units in November.

Dealers of various companies are hopeful of reaping more car sale in India this month due to the price rise announced by the makers. Other major reasons for the slow rate of car sale are the comparative high sale in the last year, the supply constraint for components and increased interest rates. The analysts felt that the actual car sale in India has surpassed the expectation and projections. Yet the final volume by the end of the fiscal will be different, said the Director general of SIAM.

There are a group of people who wait till next month to gain a year long resale promotion. This is true that the vehicle is mentioned under the year of purchase irrespective of the month purchased. The customers are not in a hurry to buy cars in this December even after offered attractive gains. Particularly in Gujarat, this month is considered to be inauspicious for good things. One more reason cited for slow sale was the suspension of dealing between the manufacturers and the dealers during the end of December, for the closure of year end maintenance.

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