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Maruti Suzuki Expects Single Digit Growth
The car industry had registered a whopping 30 per cent hike in the financial year ending March 2011. However there has been a significant slow down in car sales this year with sales in July declining by 16 per cent when compared with the same period in the previous year. Increased interest rates, fuel costs and inflation has affected car sales severely.
Maruti Suzuki's sales fell by a dramatic 25 per cent in July. The carmaker is now pinning its hopes on the soon to be released new Swift. Other major carmakers have also seen sales drop significantly. Tata Motors, Hyundai and Honda saw their sales decline.
Only carmakers which did not have high sales during last year have been able to report increased sales this year. Volkswagen, Toyota can be cited as examples. Both these carmakers benefited from launching new models. The Volkswagen Vento and the Toyota Etios have both been successful.
If Maruti Suzuki is expecting a single digit growth next year, this can be considered as the benchmark for volume carmakers. Luxury carmakers need not take heed of Maruti's prediction as luxury car sales continue to rise significantly despite increased interest rates and fuel prices.
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