Go Back   Team-BHP > BHP India > The Indian Car Scene


Closed Thread
 
Thread Tools Search this Thread
Old 21st March 2013, 11:46   #1
Senior - BHPian
 
sourabhzen's Avatar
 
Join Date: Jun 2012
Location: GURGAON
Posts: 1,541
Thanked: 1,277 Times
Default ET Article: Indian auto market hits new low

Article in ET today mentions that the Indian automobile market looks gloomy. An Excerpt:

Quote:
NEW DELHI: Here's proof that the Indian car market has hit a new low: Maruti Swift is available at a discount for the first time since its launch, and there's no waiting for delivery.

With other top performers such as sports utility vehicles Mahindra XUV500 and Toyota Fortuner, too, now available off the shelf. As rising fuel prices and lack of policy incentives wither away demand, carmakers are now offering highest discounts in several years to push sales, industry insiders say.

"Bookings have come down drastically and there's no real waiting on any model. The market is even worse than December 2000, when car sales had dipped by a massive 40% year on year," a senior marketing executive of an automotive company said. "From 12-15% discounts in the earlier months of this fiscal, many models are available at 20% less than their official price," the person said.
Full article here: http://economictimes.indiatimes.com/...w/19099679.cms

That's true indication of market, IMO

Aslo got a mail from TATA Aria for upto 200,000 discount and 50,000 exchange bonus.

Last edited by noopster : 21st March 2013 at 12:37. Reason: Added extract
sourabhzen is offline   (1) Thanks
Old 21st March 2013, 12:03   #2
Team-BHP Support
 
moralfibre's Avatar
 
Join Date: Dec 2004
Location: MH-12
Posts: 6,622
Thanked: 6,143 Times
Default re: ET Article: Indian auto market hits new low

Open the news paper today and it is filled with advertisements of cars offered at heavy discounts and tempting offers. Just the other day I read a Maruti Swift advert that read "The Swift now has a new feature: Instant delivery". The VW Vento and the Rapid can be bought by either paying a rupee or by dropping in your old car. The Nano can be bought by swiping your credit card and converting the amount into EMI's for 12 months or the like. Many other manufacturers are following suit with similar offers. And these are not manufacturers like Fiat who were struggling to sell. These are companies like Maruti Suzuki who had a 6-7 month waiting period for the Swift.

It is obvious that people aren't in a mood to spend on cars. The already burdened tax payers cannot think of adding another EMI to their kitty above their home loans.
moralfibre is offline   (2) Thanks
Old 21st March 2013, 12:13   #3
BHPian
 
sharninder's Avatar
 
Join Date: Feb 2007
Location: Goon-Gaon
Posts: 359
Thanked: 98 Times
Default re: ET Article: Indian auto market hits new low

And yet there are cars like the XUV and Duster still selling like hot cakes. Something is not right with this country and the dynamics of the car market.
sharninder is offline   (1) Thanks
Old 21st March 2013, 12:14   #4
BHPian
 
Join Date: Jan 2012
Location: Bangalore,Coorg
Posts: 790
Thanked: 361 Times
Default re: ET Article: Indian auto market hits new low

You know when a best seller like the swift has immediate delivery that demand has really dropped. It could also be excess supply to be fair, bit when every manufacturer does the same thing it is low demand for sure.

How soon this situation will turn around all depends on two things. Most importantly is growth in the economy with the job market being bad and secondly the government taxation policy. By taxing suv's additionally like PC has done in the latest budget is just bad for business. It only really works with a situation of excess demand.
pganapathy is offline  
Old 21st March 2013, 12:18   #5
BHPian
 
gomzi's Avatar
 
Join Date: Mar 2004
Location: SF Bay Area
Posts: 783
Thanked: 125 Times
Default re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by sharninder View Post
And yet there are cars like the XUV and Duster still selling like hot cakes. Something is not right with this country and the dynamics of the car market.
+1 to that. I think market skew is probably due to the undeclared income that many folks have going by the expose on money laundering in few(?) indian banks.
gomzi is offline  
Old 21st March 2013, 12:21   #6
BHPian
 
Nanometer's Avatar
 
Join Date: Feb 2013
Location: Hyderabad
Posts: 33
Thanked: 11 Times
Default re: ET Article: Indian auto market hits new low

The gloom i feel is more to do with more car makers coming into market with more choice , hence there is no monopoly or a single manufacturer contributing to rise in sales or demand. Customer is the King . Yes fuel price rise and general rise in all commodities could be a reason people are more careful on what they spend there money. Govt is not helping either.
Nanometer is offline  
Old 21st March 2013, 12:23   #7
BHPian
 
sharninder's Avatar
 
Join Date: Feb 2007
Location: Goon-Gaon
Posts: 359
Thanked: 98 Times
Default re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by gomzi View Post
+1 to that. I think market skew is probably due to the undeclared income that many folks have going by the expose on money laundering in few(?) indian banks.
I don't know if it's all black money but the low demand, as far as I can see, is only in the lower segment of the market. The premium cars are still selling. JLR, for example, is selling more cars each month than they ever did. So are Audi and BMW. Merc isn't doing too well but that's their own making.

I guess we're going off topic here, though.
sharninder is offline  
Old 21st March 2013, 12:26   #8
BANNED
 
Join Date: Apr 2006
Location: bangalore
Posts: 1,846
Thanked: 623 Times
Infractions: 0/2 (10)
Default re: ET Article: Indian auto market hits new low

That is exactly what i wanted to say. I dont want to sound politically biased, but the govt has failed in multiple areas.

They could never tackle inflation, Real estate prices shot up(more loan), Interest rates are not coming down, Economy is not looking great(job security) and to top it all fuel prices !!(they are making profit on petrol) and diesel prices will soon catch up too !!
And we pay absurd amount of road tax (Atleast we here in Karnataka are worst )

So in the middle of all this mess, last thing one needs is a spend on a car.

New buyers might look for smaller,cheaper alternatives and those looking to upgrade will want to wait some more time !!

Coming back to auto industry : For whatever reason such as taxation or personal profit, Auto makers have surely overpriced the cars. This needs to change too

To sustain growth in these times, they need to really come up with VFM options which are feature packed, yet do not command a premium

For long, maruti was milking customers by saying biggest bonus they are giving is by delivering the car in X number of months !! That is changing(we see immediate delivery for more models) Next step is they take a hit on profit margins as well.

I would not believe if anyone says automakers are living on thin margins !! they need to introspect their pricing seriously

Quote:
Originally Posted by moralfibre View Post
Open the news paper today and it is filled with advertisements of cars offered at heavy discounts and tempting offers. Just the other day I read a Maruti Swift advert that read "The Swift now has a new feature: Instant delivery". The VW Vento and the Rapid can be bought by either paying a rupee or by dropping in your old car. The Nano can be bought by swiping your credit card and converting the amount into EMI's for 12 months or the like. Many other manufacturers are following suit with similar offers. And these are not manufacturers like Fiat who were struggling to sell. These are companies like Maruti Suzuki who had a 6-7 month waiting period for the Swift.

It is obvious that people aren't in a mood to spend on cars. The already burdened tax payers cannot think of adding another EMI to their kitty above their home loans.
rajshenoy is offline  
Old 21st March 2013, 12:28   #9
rkg
Senior - BHPian
 
Join Date: Apr 2005
Location: bangalore
Posts: 1,041
Thanked: 543 Times
Default re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by sharninder View Post
And yet there are cars like the XUV and Duster still selling like hot cakes. Something is not right with this country and the dynamics of the car market.
XUV too is available off the shelf and discounts are offered ( may be less compared to other cars)
rkg is offline  
Old 21st March 2013, 12:31   #10
Senior - BHPian
 
Join Date: May 2006
Location: Pune
Posts: 1,077
Thanked: 639 Times
Default re: ET Article: Indian auto market hits new low

Gloomy car markets once in a while are good for consumers. Manufacturers finally get their feet back on the ground and people get a chance to buy the vehicle of their choice at reasonable prices.
Sometimes, the manufacturers launch new variants or all new vehicles to boost the sentiment. Which again by me, is a good thing.
So a little bit of gloom can bring in some cheer for the consumers. Why should the manufacturers have all the fun?

Edit : I would also be happy if the traffic stops growing at such a mental rate!
Nilesh5417 is offline   (2) Thanks
Old 21st March 2013, 13:01   #11
BHPian
 
sajusherief's Avatar
 
Join Date: Mar 2013
Location: Bangalore
Posts: 175
Thanked: 78 Times
Default Re: ET Article: Indian auto market hits new low

Quote:
Maruti now offers a straightRs5,000 cash corporate discount on Swift that covers its highly sought-after diesel variant and promises instant delivery, the person said. Some dealers too are offering cash discounts on Swift besides up to Rs10,000 off on select variants of the hugely successful Dzire compact sedan in select markets like Bangalore and Mumbai to increase footfalls in the showrooms.

Maruti Suzuki, however, denied any discount on Swift for retail customers. "This is not true. There is no discount for retail customers. There may be offers for certain bulk deals," a company spokesperson said in an email response to ET. "We have consistently ramped up production of Swift to meet customer demand," the person said.
They have mentioned both in the article, which one to believe. My friend who is waiting for his swift for the past 6 months, just called up the showroom and they responded saying "No offer will ever come for swift" !!!
sajusherief is offline  
Old 21st March 2013, 13:29   #12
Distinguished - BHPian
 
swiftnfurious's Avatar
 
Join Date: Sep 2009
Location: Chennai
Posts: 6,447
Thanked: 6,422 Times
Default Re: ET Article: Indian auto market hits new low

A very good trend I should say! The auto market definitely needs a price correction. If Maruti is leading it, nothing better. Because of the demand, they (all manufacturers) kept on increasing price at every available opportunity and NOT passing any benefits to the customer. Now they will be forced to.

I was surprised the other day when I took a look at the price charts - I bought my Swift VDi ABS for 5.8L OTR, Kerala in 2008 October and now a Ritz VDi costs 5.9L ex showroom!!
swiftnfurious is offline  
Old 21st March 2013, 13:37   #13
tez
BHPian
 
tez's Avatar
 
Join Date: Jun 2007
Location: pune
Posts: 381
Thanked: 16 Times
Default Re: ET Article: Indian auto market hits new low

Quote:
Originally Posted by sajusherief View Post
They have mentioned both in the article, which one to believe. My friend who is waiting for his swift for the past 6 months, just called up the showroom and they responded saying "No offer will ever come for swift" !!!
maybe ask your friend to cancel his booking and see the fun...
tez is offline   (1) Thanks
Old 21st March 2013, 14:50   #14
Distinguished - BHPian
 
supremeBaleno's Avatar
 
Join Date: Dec 2005
Location: Weekdays@Chennai, Weekends@Kerala
Posts: 5,164
Thanked: 1,633 Times
Default Re: ET Article: Indian auto market hits new low

It is over-confidence and even arrogance when a seller says "no offer will ever come on so and so car". In 2005 while buying the Baleno, the Honda dealer told me the same when I checked for offers on the City. Just a month later, he SMS-ed an offer of road-tax being free on the City, but I had then already bought the Baleno. At that time almost all the Honda cars were selling well, inspite of being petrol-fuelled cars. See where Honda is today. Swift might be a favourite today, but it does not take long for customer interest to shift, not to mention the other factors in the mix changing like Govt. policies on fuel/cars, competition etc.

Overall car sales is definitely going down, especially at the lower segments, where increase in fuel-price has more impact. It is no joke fuelling at Rs75 per litre to be able to run 12-15kms on non-existing/pot-holed/traffic-jammed roads.

Last edited by supremeBaleno : 21st March 2013 at 14:52.
supremeBaleno is offline   (5) Thanks
Old 21st March 2013, 15:13   #15
ARG
BHPian
 
Join Date: Jan 2009
Location: KA 01
Posts: 45
Thanked: 14 Times
Default Re: ET Article: Indian auto market hits new low

On the other hand, a price correction was long over-due. Let's hope this'll open the floodgates.

While on Swifts, I've been cribbing for some time that the biggest discount I could find in Trivandrum was 25k off on the current OTR on a 2012 ZXI - & that, because I managed to tap into the 'friend of a friend' circuit. :(

I wonder that this news will translate to, in actual discount (including I presume, revised dealer offers).
ARG is offline  
Closed Thread


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Repeat EXAMM! The ghost of 1st low vs 2nd low descent haunts us again... and how! Tejas@perioimpl 4x4 Excursions 41 23rd September 2010 14:16
WSJ Article : Indian Auto Boom Gets Bubbly. StarVegabond The Indian Car Scene 6 2nd September 2010 16:49
Fiat Palio to Wane from Indian Auto Market (from cartradeindia) subscrive The Indian Car Scene 27 28th February 2010 18:35
Auto hits my car from behind zaks Street Experiences 18 8th June 2009 10:05


All times are GMT +5.5. The time now is 06:43.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks