Drop in car sales due to increasing inflation have pushed auto companies to halt their expansion plans. Along with auto players, many auto component manufacturers have also lined up their investments as they don’t want to venture the market during this slowdown era.
Currently, auto manufacturers have no justified reason for expansion. Some of the car manufacturers like Toyota Kirloskar Motors, Maruti Suzuki India and Ford Motor India are rescheduling their equipment orders just because the industry is facing a jinx.
The Toyota Motors is slowing down its launches, whereas the Maruti Suzuki India has pushed the sales target to 2011 fiscal instead of 2010. The Ford Motor India is also planning to revise its expansion strategy. Ford has already announced an investment of around Rs. 2 crore in the Indian car market but is now confused with its own decision of expansion.
Recently, Skoda and its sibling Volkswagen have announced its expansion plan by launching a portfolio of cars in India. Are they still in the thought of expanding in the Indian market? If yes, will they benefit from the currently slowed down market?
India is believed to be an optimistic country, but will this optimism sway away with the current slack phase of the Indian car industry?