Car Sales Down More Than 12% In Indian Economy
The emerging economy of India has suffered a setback as car sales in the country are slumping towards their worst performance in a decade. Figures just released by the Society of Indian Automobile Manufacturers (SIAM) show that car sales were down more than 12% in January when compared to the same month in 2012.
The emerging economy of India has suffered a setback as car sales in the country are slumping towards their worst performance in a decade. Figures just released by the Society of Indian Automobile Manufacturers (SIAM) show that car sales were down more than 12% in January when compared to the same month in 2012. Sales dropped 12.45% from 198,079 to 173,420 units. The figures sound a warning for the wider Indian economy as car sales are thought of as an indicator of general economic health in the country. SIAM boss Sugato Sen predicted that the industry in India would experience a contraction in 2013, a situation not experienced in the country since 2003.
The growth of the Indian economy has slowed to its weakest pace in a decade and it seems that this slow growth has spooked consumers and led them to postpone car purchases. Indian motorists are also experiencing rising fuel costs and high interest rates and this is contributing to a slowdown in the sector. Sales of trucks and other commercial vehicles are also thought of as an indicator of economic health in the country and these too have declined. Sales for last month are down 9.5% percent from 69,865 to 63,218 compared to January 2012.
News of the Indian car sales slump comes at a time when the export of European quality marques to the emerging economies of India and China is increasing. Porsche has just released figures showing a bumper year in China. The company sold a record 31,205 cars in China during 2012, up over 28% on 2011 figures. Porsche put the figures down to strong sales of the Panamera and Cayenne models, combined with a significantly expanded sales network in the country. The company opened ten new centres in China during 2012, bringing the total to 49.
The German luxury car maker intends to double that total in 2014 and is planning a major push of its Macan compact SUV in China. Porsche has seen a major surge in demand for its SUVs in China with the Cayenne making up 65% of the company's sales in the country. This is in line with a general trend which has seen the SUV sector turn into the fastest-growing segment in China's car market. Industry experts expect the smaller Macan to continue Porsche's success in this arena. The launch builds on a trend for the luxury marques to make their cars more accessible to a wider market and the Macan is ideally positioned to quench the Chinese thirst for high quality European brands.
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