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A Good Year For The Indian Automobile Sector

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The dawn of a new year brings with it a lot of insights into what transpired in the year just gone by.In the industry , it is even more relevant when companies take a look at their Year On Year numbers.Well, the Indian Auto Sector seems to have come out tops reporting impressive numbers for the year 2009.Almost all major automakers reported increasing growth numbers.This assumes even more significance since the U.S. Automobile industry is yet to get back on its feet completely.So, the Indian advantage is showing in all its glamour.

What is even more heartening to note is that the major automakers in India have reported increasing Export revenues too.Now, a few automobile manufactures like Hyundai are not necessary Indian but their Indian operations have been doing brisk business and this brings home the fact that the Indian Economy is getting back in shape.

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Hyundai Motor India Ltd, the country’s second largest car manufacturer and the largest passenger car exporter surpassed its target for 2009 and reported a 42% increase in domestic sales.The exports grew by around 9% , a lot of contribution to this coming from the latest flagship model i10 and the advanced version i20.Hyundai opened its second plant in Chennai to cater to the increasing export demand for its i10 models.

Maruti Suzuki , one the leading car maker in India did get its bearings right in an increasingly competitive Indian Car market by gradually shunning down the traditional M800 model.Maruti represented a ~31% increase in sales on a YOY basis.Maruti has been very aggressively rolling out a gamut of new models specially in the small car segment as it is known.Maruti has also increased its market share in the A3 segment with its SX4 and D’zire models giving the likes of Honda City a run for its money.

General Motors India registered a phenomenal >100% increase in sales for the month ending Dec against the same in the year 2008.This marked the highest ever sales number in a month for General Motors India.The company has gained good traction with its new hatchback Chevrolet Spark and the Chevrolet Tavera.The company registered a 16% growth for the 3rd quarter ending Dec 09.

Mahindra and Mahindra , a major player in the tractor market has launched into the passenger car market for sometime and has reported tremendous number for the month ending December 2009.It reported a whopping 122% increase in the sales for the last month of the year and a phenomenal increase in export by 203%. Talk about explosive growth.

All in all, the month of December in the year 2009 turned out to be fruitful for the auto makers in general.However, the Indian Auto makers are getting even more hotter.The german car maker Volkswagen has made an impressive entry into India and they seem to have their focus right on the money, the small car segment.This year should be an interesting one too for the auto makers and the auto makers are happy with the demand.So much so that the likes of Ford India have raised the prices for their models and the industry analysts claim that a 5% increase in car prices is around the corner.It will also be a worth watching how Tata Motors shapes up this year.Nano has enjoyed tremendous publicity and hype and it will be great if the sales numbers justify the same.Tata Motors will also be looking to get aggressive with its recently acquired Jaguar and Land Rover models.

With the economy growing at a healthy rate, the future looks promising for the Indian Auto Market.

What are your thoughts on the Indian Auto Industry? Do you think they will be able to maintain the growth momentum this year in an ever increasing competitive marketplace

  1. vikram says

    my only thought being — why the f did i sell tata motors at a loss …booooooooo

    1. Ankit Agarwal says

      LOL.. That s problem with all of us, aint it :-) We always end up on the losing side of it.Though i never invested in Tata Motors but i can understand ur pain.I have exited my positions at times when the stock zoomed the very next day.
      Making money in Stock market is a game of discipline and thats a hard thing to come by

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