Car Industry Year 2013 round up
INDIA: The year 2013 has not been good for car manufacturers. Auto sector in India has not seen promising days in this year. A record decline in car sales, strikes and vehicle recalls was registered. This year has been quite challenging for automobile manufacturers. Adverse rates of exchange after downward spiral or rupee began in comparison to dollar, the situation became all the more difficult. Moreover high cost of input and rising fuel prices also deteriorated the situation. The government also decided to hike excise duty on SUVs or Sports Utility Vehicles. This further compounded problems for this sector.
Rapid Decline in Sales
Economic downturn has hit this sector drastically. Many automobile companies are striving hard to woo potential buyers by launching new models in the market but only few of them have succeeded. Some of these cars who have caught the attention of buyers are Ford Ecosport and Honda Amaze. The former is a sports utility vehicle and the latter is a sedan. These cars have managed to face the challenge of economic downturn.
This year also witnessed maximum number of vehicle recalls from some of the top automobile manufacturers. General Motors or GM recalled almost one lakh forty thousand Tavera cars. It is a multi-purpose vehicle and the units that were recalled were manufactured between the years 2005 to 2013. There were issues related to specifications and emissions.
Problems like labor unrest were also faced by companies like Mahindra & Mahindra and Bajaj Auto. On the whole, the entire year was quite disappointing. One of the most deep and prolonged slowdown was witnessed by this industry. However, the industry is optimistic about future of the industry in the coming times when they expect to grow and flourish. The decline in car sales is expected to perk up in the coming year.