Automakers to attenuate output due to low sales volume

Hike in fuel prices, increased premium rates for diesel cars, etc are some of the factors due to which Indian auto market is witnessing considerable downward swing in the demand of cars or SUVs, latest trend analysis speculate that the demand will follow the same downward trajectory over the next two months. Indian auto market has attested a fall of 9 per cent in the production last month, compared to April, and it is expected that the graph of car sales may fall to even more lower levels.

As per the latest updates, India's second largest car manufacturing industry, Hyundai India is currently witnessing a steep fall in the demand graph of its various models and Arvind Saxena, director, sales and marketing also said that they fear that the sales may fall even lower than that of the last month.

According to the report of the Society of Indian Automobile Manufacturers (SIAM), peak fall of upto 11 percent, in the production of cars, was recorded in May. Auto Industries are not straight away commenting over the market status however they say achieving the sales target of this month seems to be little difficult.

P Balendran, vice-president (corporate affairs), General Motors India said that with the aid of their promotional campaigns, they are trying to keep their production level at par with May. However some companies like  Mahindra and Mahindra and Maruti India are mulling to keep their production plant shut down this month so as to rationalize stocks available with dealers. Pawan Goenka, president (automotive and farm equipment sectors) Mahindra and Mahindra said that demand and supply go hand in hand and since the market is witnessing low demand so they will  be taking a week long shutdown this month to prune inventories at dealers. It is speculated that companies will keep the supplies low until car sales pick up again just before the festive season.