Can diesel models help carmakers meet annual sales targets? A preponderantly diesel portfolio even within the carriage business has maybe return to the rescue of Tata Motors in might, once gas costs were hiked by quite Rs seven across the country, resulting in a fulminant decline in gas automotive purchases.
The country’s largest automotive maker, Maruti Suzuki India, saw sales of its entry level cars -M800, Alto, A-star and WagonR – decline by a large twenty nine percent; none of those models have a diesel possibility. within the same month, Tata’s Indica portfolio remained flat with a mere one p.c decline (Indica largely sells in diesel), whereas sales of the Nano (no diesel however highest fuel potency of all cars in India) were higher by a large thirty one p.c.
Clearly, the subdued overall shopping for sentiment, deceleration economic process and enlarged value of operation of gas cars have additional to the trade gloom.To attract consumers, discounts on gas cars stay at uncomparable high levels, with the Maruti Alto – the only largest merchandising automotive in India – coming back for nearly Rs fifty,000 cheaper through discounts and freebies. Even the SX4 sedan, that has seen robust competition from Honda town (which recently became cheaper by Rs sixty,000), and from new models like Volkswagen Vento and Jewish calendar month Sunny, oversubscribed solely 405 units this might against a pair of,702 units within the same month last year, AN eighty five p.c decline.
Is Maruti wanting to slash costs of the SX4 to urge into reckoning? Discounts on this automotive conjointly total regarding Rs thirty,000, even with a diesel possibility on the market. additionally, section leader Honda town is barely on the market with a petroleum engine.
Even the Omni and Eeco cars could not hold their own, with sales down virtually thirty p.c. In May, Maruti oversubscribed four.3 p.c less within the domestic market at eighty nine,478 units (93,519 units). Even exports were down by eleven p.c to nine,406 units (10,554 units).
The company has already indicated it’ll cut back production of gas cars by fifty,000 units within the current yr when it adds a pair of.6 large integer diesel cars.
Meanwhile, Tata Motors’ rider vehicle sales (cars, utility vehicles and vans) were twenty,503 units, six p.c growth over nineteen,401 units last might. Nano clocked eight,507 units (6,515 units); Indica vary sales were five,467 units (5,497 units); Indigo vary oversubscribed three,397 units, lower by twenty p.c, over 4,268 units in last might. The Sumo/ Safari/ Aria/ Venture vary sales were flat at three,132 units.
Ford India’s sales fell fourteen p.c, whereas General Motors India according a way vessel twenty seven p.c slide in sales. GM sold 6,079 units (8,329 units); solely 735 units of tiny automotive Spark were oversubscribed last month. The Beat (which currently conjointly features a diesel option) oversubscribed four,110 units; entry-level sedan Aveo oversubscribed solely seventy one units; Optra, a mere seven units and luxury sedan Cruze, simply 188 units.
Another 946 units of multi-purpose vehicle Tavera and twenty two units of sports utility vehicle Captiva were conjointly oversubscribed. during this bleak state of affairs, can automotive manufacturers meet the annual sales target set by the Society of Indian Automobile makers (SIAM) set at the start of the fiscal? Siam has forecast 10-12 p.c sales growth within the current yr.