Year-end discounts, in fact able to increase sales of car in the end of 2011. It seen in most of companies note, but the leader of car market, Maruti Suzuki, as exception. Now car market, struggle to stay because rates of interest and petrol prices high. But need long time to reach normal condition. In the end of 2011 Maruti was jolted by strikes which effect to company performance, added with decreasing of sales 13% in December 2011 with total sale is 77,475 units, if compare with December 2010 sales reach 89,469 units.
Might the end of year, Maruti must take some learnings of their sales which decline. In other side Hyundai get lucky in launching of new entry-car Eon, their sales grow at 13% and able to sell 29,516 units, if compare in the same period in 2010 sell 26,168 units. Arvind Saxena (sales and marketing director) said in next coming months expected demand will remain subdued. Increase sales in December 2011 give some cheer in the end of the year, but he doesn't expect that market will grow in the near future.
Economic growth which uncertainty, has force manufacturer to provide a nice discounts, but job cuts issues and poor increments has decrease sentiment of market. Although RBI can take a breather from effect of interest rate, actually rate of financing yet to come down. He argues that problem of the high interest of rates is home loan borrowers which on a big way. This condition push consumers to postpone buy a new car.
Meanwhile, senior director of Siam said that the weakness of market sentiments wills twice declining sales in 2011-12. But he hope didn't meet the forecast, because he must revise his forecast in January. And worries on declining of car market will create negative impact because this segment contributes almost 65% car sales in India. And all grow worse when interest rate and of car loans and petrol grow up.
Uncertainty of market sentiments is mysteries problem for segment product certain, like what happen to Maruti Suzuki. When most of car manufacturer, experiencing growth, Maruti Suzuki even conversely.
