The demand of radio taxis in India is gradually growing. Though this is increasing the market for car rental but car manufacturers are also rejoicing this growth.
During this time when manufacturers are struggling to beat the recession, radio taxis are becoming a stable source of revenue for the car industry. This revenue is believed to persist for a minimum period of three to five years because of upcoming sports event in India.
Fulfilling the needs of private car rental companies that offer radio taxis to tourists have become an alternative medium of car sales. A renowned cab service, Easy Cabs has placed an order for 700 Mahindra-Renault Logan. Alongwith the company has also placed an order for a fleet of 200 cars with Maruti Suzuki and Tata Motors. Other popular car rental companies like Meru Cabs and Quick Cabs have also placed an order of 500 cars with different car manufacturers.
Accepting this alternative source of car sales and revenue, car manufacturers are counteracting the decline in passenger car sales.
So, finally car manufacturers have got an alternative source of earning revenue even in the present situation. But then, it’s only a few car manufacturers who are enjoying the benefits of sports event in the country. What about the others?
Yes, ketri you are right. Some will definitely cope up but the others are still having a tough time. I think government should offer some kind of support to the car industry and help them stand after a steep fall. If government pull out theri hands in support of the industry I think many factors contributing to the low sales can be eroded.