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With the GDP growth pegged at 5-5.5%, the lowest in the last
decade, shrinking consumer's disposable income and a tepid
employment scenario, the situation is likely to remain bleak for
the coming year till next year's election.
With rising fuel prices and high interest rates, buying
decisions, too, are getting deferred, industry experts say the
number of first-time car buyers have shrunk from 34% to 22% in
the last one year.
The industry is sitting on a massive overcapacity, with
passenger vehicle capacity utilisation pegged at 50-60%.
NEWS AND UPDATES
Europe slump forces Tata Motors to mull
future of Spanish arm. Tata motors is mulling
what to do with its Spanish bus-
manufacturing subsidiary Hispano
Carrocera, in the wake of the slowdown that
has hit automakers in Europe. However the
chairman of the company did not provide
details on the options the company was
taking into consideration.
Tata Motors defers JLR listing on China boost
Indian auto major Tata Motors has decided to defer the
listing of its Jaguar Land Rover (JLR) unit on the London
It is likely to postponed for 2 years.
China to be Tata Motors' biggest revenue driver this
In FY14, Tata Motors is likely to earn more revenues from
China than any other country or region.
Already, in FY13, China accounted for 23.6% of Tata
Motors' global revenues, just a whisker behind India, which
brought in 23.9% of its revenues
JLR's sales in China grew from 17,552 units to 77,144 units
in three year, since it set up a National Sales Company there
to import and sell cars.
In rupee terms, its China revenues grew from Rs 11,464
crore to Rs 44,565 crore in the same period.
JLR is still a small player in China's luxury vehicle market
dominated by Audi, BMW and Mercedes.
In FY13, China overtook UK as the largest single market for
JLR, with a contribution of 20.6 percent to overall volumes.
JLR is well on its target to achieve a volume of 100,000
units in China in FY14, up 28 percent Y-o-Y.
Tata Motors global wholesales down 14% in
A sharp rise in the sales of its luxury Jaguar Land Rover cars
failed to offset sluggish passenger and commercial vehicle sales.
Sales of its Jaguar Land Rover brand, which Tata purchased for
USD 2.3 billion in 2008, stood at 35,162 in the month, a rise of 31
percent from a year earlier.
Maruti launches WagonR Stingray at a starting price
of Rs 4.10 lakh
Maruti sold around 1.3 million units of the WagonR since its
launch in December 1999, on an average of about 12,000 units
The launch comes when the auto industry is gearing up to
boost sales in the upcoming festive season
the difference between petrol and diesel fuels getting
narrower, demand for petrol vehicles has been coming back in
Passenger vehicle market appears to be falling
off the cliff
The Indian passenger vehicle market appears to be falling off
the cliff, staring at its first decline in a decade, as its two key
growth drivers — utility vehicles and diesel-driven cars — are
taxed with increased duties and rising pricing.
The passenger vehicle market size has dropped from 2.42 lakh
units per month in January 2013 to 1.86 lakh units per month in
It is partly because of the extra tax imposed on SUVs; also, due
to increasing diesel prices, the UV segment has also come under
pressure. In July, for the first time since May 2009, there was a
contraction in the UV segment.
Petrol cars overtake diesel cousins in sales after
over two years
Sales of petrol cars have overtaken their diesel variants after
a gap of about 25 months spurred by a steady rise in the price of
diesel, which has shifted consumers' interest from costlier diesel
variants to cheaper petrol cars.
Only 42% customers bought diesel cars in the first quarter of
this fiscal year compared to around 54% in the corresponding
period previous year.
Oil companies have been steadily hiking diesel prices that
have decreased the lucrative gap between petrol and diesel
In January, the government allowed state oil firms to raise diesel
rates in small doses until retail prices are aligned with international
rates, which shifted consumers' interest from diesel to petrol cars.
According to industry data, auto manufacturers posted 12.5%
increase in petrol cars sales last month, which happened at a time
when automobile sector is facing a sluggish demand. But the fall in
the sale of diesel cars is much sharper.
Despite the muted market conditions, a positive trend is seen in
sales of petrol vehicles last month on the back of rising demand for
smaller entry-level cars like Maruti Alto, WagonR andHyundai EON,
they said. But, diesel car sales in July for models like Honda Amaze
and Maruti Dzire have been dropping in recent months.
Consumption of petrol jumped by about 13% in April-June
quarter this year while the growth of diesel was only 0.6%
POSITIVITY ON HERO