The last signs of recession which seem to have cleared up in various sectors across the country are now showing signs of clearing in the automotive sector in the country as well. Many of the top car companies have registered record sales in the past one year. Those which form the bulk of the sales in the country have done amazingly well.
Some of the statistics give the true picture of what has really happened: –
- In September 2010, Maruti Suzuki recorded sales of more than 10 lakh units which is growth of 29.5% over the same time previous year when it had clocked sales of about 83,000 units
- Hyundai has shown a growth of about 14.1% in sales from 27,000 units in September 2009 to about 31,000 in September 2010
- Others like Tata Motors, Mahindra, General Motors, Ford India, Toyota and Honda have also not been left behind in this race.
The biggest reason being seen for the increasing sales is the rising economic growth in the country. The fact that we have come back to an approximately 8.75% growth rate since the low times of about 7% has played a big role in the growth of the automotive sector. Easier loan rates and also increasing incomes have played their path in this growth trajectory.
But then some of these figures may seem really good because last year the picture was really horrible due to the financial downturn. Don’t you think so?
But interestingly, the number of people who are switching models after selection has increased to around 10% compared to just 7% last year.
The reasons of this include: –
- Problems in delivery time
- Pricing issues
- Design and style concerns
The biggest problem which many of the car companies are facing is the inability to handle such a high demand. And that is why they seem to be beset by problems ranging from absence of spare parts and also very long delivery times.
With increasing competition, many of the companies are expanding capacity and working round the clock to give the customers the facilities and options they need in terms of price, design etc.
But the question is “Can they shorten their delivery time to a real low?”