HINDUSTAN TIMES

MOTOWN INDIA
TURNS LAGGARD 

2nd yr of sales dip looms, cos seek sops

NEW DELHI: Once the toast of the global automobile industry, India has quickly turned into the slowest among emerging markets such as China, Brazil, Indonesia, South Africa, Russia and Argentina, a bare two years after it became world’s fastest growing automobile market.
The domestic automotive industry declined by nearly 10% in the first 8 months this calendar year. Though much of this is blamed on the overall slowdown in the economy, other markets that are facing similar headwinds have performed significantly better. China, the world’s largest automobile market which India upstaged in 2010, grew by over 13% while car sales in Indonesia is at a historic high.
The only other countries in the red, giving India company, are Brazil and Russia with a 2% and 6.6% decline in sales in 2013 respectively.

“The market situation is the toughest in the last two decades,” said Mayank Pareek, chief operating officer, marketing and sales, Maruti Suzuki India Ltd. “Almost all segments are feeling the heat. Small cars are impacted badly because this segment of customers is most impacted by a slowdown. Everything from interest rates and inflation to fuel prices affects them.”
Sports utility vehicles, which had grown in high double digits in the last two years, are also reeling under the slowdown. The rapid increase in diesel prices this year combined with higher taxes on SUVs have hastened the fall. In June, India’s largest utility vehicle maker Mahindra reported its first monthly sales decline in nearly three years.
                            NAME NAGESH DUBEY
                            PGDM 1ST