Rising fuel and finance costs have slowed the market in India causing many carmakers to cut production – but the new model launch bandwagon continues to roll.
Almost all the car manufacturers in the country are lining up new models, according to The Times of India.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This is because, when sales dwindle, carmakers launch new or upgraded products to lift sales. Undecided customers get excited by new models, according to analysts.
Maruti Suzuki recently announced a week-long plant shutdown not long after it launched the Ertiga seven-seat, multipurpose vehicle which has played its part in driving up sales in June by 20% over a year ago, reported The Times.
The Ertiga has a waiting period of up to four months with delivery of the top-end variant stretching well into early next year.
Tata Motors is all set to launch the all-new Safari Storme and a CNG Nano. At the same time, the company has taken steps to cut production. Company insiders say that Tata is merely inventory under control and that this is a short-term phenomenon.
Toyota Kirloskar Motors, Fiat and General Motors India have streamlined production in line with market demand. Dealers along with manufacturers are offering huge discounts to clear inventory.
General Motors, which recently launched the Chevrolet Cruze, is going ahead with its launch schedule for the year. A new variant of the Chevrolet Captiva is one, followed by products from its joint venture partner SAIC like the Chevrolet Sail.
The Times noted that GM is curtailing output at its two plants in Talegaon and Halol with no-production days to align supplies.
