Car sales deeply affected by weak consumer sentiment
The passenger car segment of Indian market has been severely hit due to declining sales from prolonged period of time. Top companies such as Maruti, Mahindra, Tata have already claimed major impact on the business but more is expected to come by. Industry experts claim that sentiments of people are holding them back from investing huge bucks in car purchases. During past 12 months, automobile sector has witnessed steady decline and the sale of commercial vehicle has been hit hard. The current slowdown has made the situation little bit flat for the automakers in India. It is being noticed that people are hesitant in investing money in purchasing cars and washing machines.
It is being said that present GDP growth of the country that is 4- 4.5 percent is not enough for automobile industry to grow. GDP of 6.5- 7 or rather 8 percent is considered to be good. Toyota Kirloskar, an eminent automaker trusts the potential of Indian market and believes that if the company can easily become competitive if it focuses on quality, cost and delivery along with concentration on people, skill development and process. The current situation prevailing in the Indian market can be overcome by efforts of both government and auto companies. A common goal will lead the market through such difficult and testing time.
Industry experts suggest that if entities within the automotive industry should stand up to the adversities. It is possible to find a way out through this tough time by hard and persistent work. It is always important to stay competitive, deliver best quality along with cost-effective and timely services. It is important to value two aspects at a time, one is ‘How to serve Indian market with right product and quality’ and second is ‘How to look at factory India where export can be made to the whole world’.