The thought keeps rolling in and out as to why the car manufacturers have rescheduled their production cycles. Is it the increasing fuel prices? Is it the increasing input costs? Or is it the slowing down of car sales?
The latest news of the car industry clearly states that car sales are going down drastically. Car dealers and distributors are left with pile of unsold cars. The increasing inventory and decreasing sales have further compelled car manufacturers to reschedule their production cycle and reduce the number at this stage.
Not only the car makers and dealers are affected with the rescheduled production but also the car component suppliers. Almost all the car companies have given a halt to the supply of components. The news is in the air that Maruti Suzuki, Tata Motors, Ford Motor and General Motors are streamlining their production plans to comply with the current scenario.
Labels: Car-Industry, Car-Production-Cycle
4 Comments:
Maybe it can be due to the inflation and increase fuel costs that many of the car buyers are unwilling to go for new cars in the market. I read a few days earlier in your blogs that many of the car manufacturers were giving huge discounts but i think this has no where helped the buyers to enter the showrooms either they are still not ready to buy one or they are worried about the above factors which makes them think hundred times whether to purchase new car or not. Even the car makers are trying to attract the buyers but it’s not working out and due to this there production is on hold. Hope that buyers come out of these negative thoughts.
Even I read somewhere that sales are completely flat during this quarter of the fiscal year. The condition is expected to be the same until the next few months until the government take some initiative to improve the condition of the Indian car industry. Government should think seriously on the issue and relieve all those who are affected with the inflation.
Indian car makers are now looking with dismay the impact of plunging sales. They have high expectations from the festival season. I also think that Durga Puja and Navratri will come out to be a good season of car sales.
Car makers are offering discounts in order to lure customers but unfortunately there is no improvement in the car sales. The waning customer interest for new cars has brought down the high hopes and expectations of car producers. I think waning customer interest have compelled car makers to reschedule their production cycles.
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