Automakers scale up to meet the festive demand

According to the sources, the automakers are increasing their production capacity so that they may meet the spurt in demand during the festival season which is around the corner. Every year the period between October to November is the one in which the auto makers observe a demand spurt. The reason behind this demand is that mostly the religious festivals across India coincide with this period. But this time, the coming season is going to be even more challenging for the automakers because they are  already strenuously engaged with meeting the demand of the consumers. The spurt in demand starts with the beginning of Navratras in October and extends  up to mid-November which is time for  Diwali. As most of the customers think that purchasing metal at this time of the year is auspicious, so automatically there is rise in sales.

Maruti Suzuki, the largest carmaker of India has started a temporary production line which has to be operated manually in the beginning.  The other auto giant Toyota Kirloskar Motor has also started its expansion at the first plant of the company which manufactures the Innova, Corolla and Fortuner. Initially, this expansion was expected in the beginning of January 2011. Sundeep Singh deputy MD (marketing), Toyota Kirloskar Motor commented that the expansion of the plant in October-November would help in increasing the production to 80,000 units every year which in turn will support for covering the recent shortages. Though most of the auto companies generally begin making inventories two-three months before the festive season but the constant high demand of the last few months has wiped off those planned inventories.
 
The other car makers like Hyundai Motor India has shifted most of its production from exports to domestic market. Volkswagen India has began a second shift at its Chakan plant. Even the two-wheeler makers are also getting ready  to meet the demand. Hero Honda is also planning to increase its production from the Haridwar plant. Not only the automakers but the component makers are making their efforts too, to meet the demand pressures from automakers. Surinder Kapur, chairman of Delhi-based Sona Group commented that they would be working on all days of a week. They have built up even the capacities but the real challenge is to ensure the supply of raw material supplies for meeting a strong festive demand. The Automotive Component Manufacturers Association of India (ACMA) stated that the capacity expansion will act as a relief for manufacturers during the peak festive season.

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