Indian Car Blog - Carazoo.com

With the festive season on the threshold, most of the car makers in India are increasing their production by recruiting a batch of new employees. But some of the car makers are yet to up their production scale. Many car makers are now rolling out more cars than their monthly average, expecting immense sales in the months of September and October.

But luxury car makers like BMW India and Mercedes-Benz India manufactured less cars last month compared to the same month last year. In fact, BMW's production decreased by 8 per cent to 224 units while Mercedes-Benz made almost 80 per cent less cars at just 91 units in August. Of late, we have seen that BMW has edged out Mercedes-Benz which has been ruling the luxury car segment in India. It has been revealed that Mercedes-Benz has been considering on commercial vehicle business to generate growth and also is busy renovating the E-Class, which is the company’s biggest selling model in India.

Toyota Kirloskar Motor, the Indian arm of Toyota Motor Corporation, manufactured 10.67 per cent less at just 4,831 units in August in spite of getting very good order bookings for the Fortuner. SkodaAuto India reported almost halving of production in comparison with August 2008. The most evident reason for this could be the sales of the Fabia continue to remain below expectations since its launch in January 2008. The maker of the mighty Ambassador, the Lancer, the Cedia and the Outlander in India, Hindustan Motors, produced only 716 cars which show a decline of over 2 per cent.

Moreover, General Motors with its Chevrolet brand also made almost 5 per cent less cars at 5,109 units last month. We have Mahindra Renault India, which makes the mid-size sedan Logan, has manufactured only a fraction of what it did last year because of the car's low sales. It made only 785 units in August, a decline of almost 38 per cent. But, Tata Motors showed a modest 3.41 per cent increase in its overall production of Commercial Vehicles (CVs) and passenger vehicles.

However, the overall production of vehicles, showed a healthy growth of 15.27 per cent at 11,33,839 units last month. On the sales front, the good run continued for passenger cars with domestic sales growing a healthy 25.59 per cent at 1,20,669 units.

The Indian car industry has been witnessing a boom during the festive season over the ages. Car makers generally ramp their production this time of the year to meet the demands of the customers. The Indian car market is growing steadily and in near future it will surely knock out China and emerge as the largest car market in the world.

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