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8% Car Sales Crash In Nov Triggers Alarm Bells
Only a hand full of carmakers could retain positive sales reports for November 2012 as car buyers continue to be bogged down by high interest rates and increasing fuel costs. Maruti Suzuki and Mahindra are two carmakers who have managed a sizeable increase in November sales.
The Society of Indian Automobile Manufacturers has stated that it will have to re-assess its full year growth estimate. SIAM had previously estimated a sales growth of 10 to 12 percent in the beginning of the year. But persistent low sales has forced the Indian automobile body to reduce it to 1 to 3%.
According to the data released by SIAM on Monday, carmakers have managed to sell 158,257 cars in November 2012. Sales of motorcycles have remained flat at 867,518 units.
The Indian car market was considered as a key growth market by several automobile manufacturers. But the Indian consumer has been put down be frequently increasing prices and increasing ownership costs. While many carmakers are trying to bring the cost of ownership down, the results will not be visible immediately.
Overall sales during the April - October season has increased by just 1.3%. Carmakers are not very optimistic about the remaining months this fiscal year as many of them have announced price hikes effective from January.
The November car sales have indicated the true picture of the car market which has been masked at times by sales surges triggered by huge discounts and offers and at times by inflated sales reports. These inflated sales reports are a result of carmakers considering deliveries to dealers as the sales figure while the actual sales at dealers could be much lower.
Carmakers will be a worried lot this December. Although the announcement of price hikes in January has effectively increased foot falls in showrooms this month, sales are expected to slide from next month.
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