Indian Car Makers Off to a Great Start

The masses of the emerging economy of the subcontinent are getting mobilised as car sales get off to a great start.

December proved to be a very successful month in India as market leaders saw a 50% year-on-year rise and they all expect that this will continue into the New Year.

Maruti Suzuki saw sales of 84,804 units while Hyundai Motor India clocked up 47,217 units, a 23% increase.

Auto companies across the spectrum reported substantial growth during the month, largely due to the low base as economic slowdown had hit sales badly in December 2008. However, both Maruti and Hyundai, that together control about 70 per cent of the Indian car market, sold fewer cars than in November. Both companies saw a decline from their peak in November when they clocked their highest-ever monthly sales of 87,807 (Maruti) and 55,265 (Hyundai) units, respectively.

Although still positive news the dip can be attributed people holding off from buying a 2009 model as the new 2010 models are being lined up. Experts believe that the Indian market is set to make serious progression in the early months of 2010.

What does this mean for us?

Well the more positive news we see out there and the longer we languish in the doldrums of a recession the more manufacturers are going to shy away from the European market.

Investment is already pouring into the East as companies realise that is where the money is these days and will unfortunately mean money will be directed from the UK. When money is hard to come by this could see a decline in investments that lead to jobs in the UK, which again has a knock on effect.

It’s all speculation now but it’s the sort of news that may be a concern in the future. With car manufacturers being as global as they are, General Motors is a prime example of how a global company will just up and leave when the going is better elsewhere.

E. Dooley

05/01/2010