The past couple of months have proved to be a curse for the global car market. The global recession had hit the industry so badly that it has affecting the economy.
In November, the U.S car market experienced a decline of about 37% which is shockingly believed to be the steepest fall in the past 26 years. For about 26 years, U.S market has rejoiced a joyful ride. But now, even the big car manufacturers like General Motors, Ford, and Chrysler have reported over 40% decline in their car sales.
This situation in U.S has severely affected the Indian car market with domestic sales plunging to about 19.38% in November 2008. Like U.S, India also had lived a splendid time with a continuous boom in the domestic car sales in past 8 years.
The glorious years are now over but the car manufacturers are still optimistic with hopes and aspiration. They are offering discounts and schemes as part of Christmas and New Year celebration with the expectation of growth in their car sales. Car manufacturers are looking forward with positive perceptions that the month of December will pour some blessings in the car market and put an end to the slowdown as well as this year.
Almost all car manufacturers have cut down their car prices to bring back their waning customers to the showrooms. The consumer’s response after the announcement of heavy discount on Honda Civic Hybrid and Ford Fiesta are the live examples to showcase that car discounts may boost the car sales. Both the cars have experienced good sales in a small period of time.
Further to that, the Indian Government has lowered the excise duty by 4%. This has given one more opportunity to the car industry for improving their sales numbers. Most of the car companies have reduced the prices of their entire fleet of cars to pass the benefit of lowed taxes to their customers. This means that the total discount in overall price of the car is double-digit with more expectations of car sales to zoom this December.
Even I do think that car sales will zoom in December. This is the festive season where people make most of their purchases. And above that the reduced car prices has add more thrill. People are now planning to buy new cars.
Hey, yes, even I read today that car insurance rates are soon to increase. Of course this will raise the car prices and may be again the car market will come to the same position where it is today.
I don’t find any reason for car sales to zoom in December. Yes, I do agree that car manufacturers have reduced the prices of their car models. But then I read the newspaper in the morning and came to know that insurance companies are increasing their rates. Don’t you think this will affect the car prices?