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No Improvement in Auto Sales FullThrottle.in, Nov. 27, 2008
The sordid state of affairs in the Indian auto market continues, with high-interest rates, reluctance on the banks part to give loans and the economic recession being the main villains. The stock market crash has further convinced people to refrain from putting their automobile procurement plans into action.

As a result, business across the four-wheeler and two-wheeler manufacturing industry has been rendered rather moribund.

Industry leader Maruti Suzuki India (MSI) seems to find itself at the vanguard of the scathing pinches of the morbid economical status quo, a fact which can be compounded by the 27% crash in monthly sales it witnessed. As compared to the same month last year when 65,216 units were sold, MSI could only manage to sell 47,704 units in the month of November 08. This is by far the sharpest monthly sales crash Maruti has ever experienced. The company's menagerie of small cars is coming under immense pressure and even the launch of the A-Star couldn't avoid the 27% dip in small car sales.

Tata Motors and General Motors India too find themselves with their back against the wall. The 12% dip in Tata's passenger vehicle sales was eclipsed by GM's monthly sales figure which stood at a loss of 20%.

Among two-wheeler manufacturers, Bajaj and TVS were the major losers. Bajaj which saw its sales plummet by 32% intends to counter this development by giving the green light for the launch of a new product every month for the next six months.

The appalling sales volume marks the nadir in the history of the wounded four-wheeler and two-wheeler manufacturers in the country. Industry analysts are of the view that the current trend will continue till early next year.
 
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