MUMBAI: Muted demand courtesy of escalating fuel and finance costs may have left India's carmakers with little choice but to cut production, but when it comes to new launches they aren't quite slamming the brakes.
From market leader Maruti Suzuki to India's largest automaker by revenues Tata Motors to the multinational majors, virtually every car manufacturer is lining up new models even as it goes slow on the production front.
Explains Rakesh Batra, national leader (automotive), Ernst & YOUNG: "When sales dwindle, car companies try and launch new or upgraded products to lift sales.
Undecided customers get excited by new models."Maruti Suzuki recently opted for a week-long plant shutdown not long after it launched the Ertiga multipurpose vehicle, which has played its part in driving up sales in June by 20% over a year ago.
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.
"Tata Motors is producing as per market demands as we want to keep our inventory under control. This is a short-term phenomenon, and the launches must go ahead according to plan," said a person who is closely involved with the company's plans.
Toyota Kirloskar Motors, Italian carmaker Fiat and General Motors India have streamlined their petrol car production in tandem with market demand.
Dealers along with manufacturers are offering ostensibly huge discounts to clear inventory. General Motors, which recently launched the Chevrolet Cruze, is going ahead with its launch schedule for the year.
A fresh variant of the Chevrolet Captiva is one of them, followed by products from the stable of its joint venture partner SAIC, like the Chevrolet Sail.
For now, The US auto major is curtailing output at its two plants in Talegaon and Halol by observing no-production days to align supplies.
"Product programs are finalised much in advance and investments that cannot be postponed have been made.
New launches create excitement and generate volumes," said P Balendran, VP, corporate affairs, general Motors India.
Another US auto major, Ford India, has had little to show for its efforts after the successful launch of the Figo hatchback in March 2010.
The company now has the compact SUV Ford EcoSport lined up, a potential game changer for a company that still has to get its India act together.
indiatimes.com
From market leader Maruti Suzuki to India's largest automaker by revenues Tata Motors to the multinational majors, virtually every car manufacturer is lining up new models even as it goes slow on the production front.
Explains Rakesh Batra, national leader (automotive), Ernst & YOUNG: "When sales dwindle, car companies try and launch new or upgraded products to lift sales.
Undecided customers get excited by new models."Maruti Suzuki recently opted for a week-long plant shutdown not long after it launched the Ertiga multipurpose vehicle, which has played its part in driving up sales in June by 20% over a year ago.
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.
"Tata Motors is producing as per market demands as we want to keep our inventory under control. This is a short-term phenomenon, and the launches must go ahead according to plan," said a person who is closely involved with the company's plans.
Toyota Kirloskar Motors, Italian carmaker Fiat and General Motors India have streamlined their petrol car production in tandem with market demand.
Dealers along with manufacturers are offering ostensibly huge discounts to clear inventory. General Motors, which recently launched the Chevrolet Cruze, is going ahead with its launch schedule for the year.
A fresh variant of the Chevrolet Captiva is one of them, followed by products from the stable of its joint venture partner SAIC, like the Chevrolet Sail.
For now, The US auto major is curtailing output at its two plants in Talegaon and Halol by observing no-production days to align supplies.
"Product programs are finalised much in advance and investments that cannot be postponed have been made.
New launches create excitement and generate volumes," said P Balendran, VP, corporate affairs, general Motors India.
Another US auto major, Ford India, has had little to show for its efforts after the successful launch of the Figo hatchback in March 2010.
The company now has the compact SUV Ford EcoSport lined up, a potential game changer for a company that still has to get its India act together.
indiatimes.com
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