The auto market in India is going through a phase of turmoil, mainly because of the weakened economy at the micro level. The industry has suffered its worst for two consecutive years; the main triggers for low customer sentiment value are increased fuel and commodity prices.
Toyota Logo
The market is showing signs of improvement, and a handful of firms are witnessing growths from the previous year. It is a still a long way before complete recovery and the volatile economy mayhem has not ended. Toyota has recorded 4% growth in domestic market.
The effect of recession has not just affected auto firms, but oil companies as well. The (CCPA) Cabinet Committee on Political Affairs provided a statement to (OMCs) Public Sector Oil Marketing Companies to enhance the sale value of diesel retail price on a monthly basis by 40 to 50 paise. The increase is exclusive of VAT applicable in various union territories or states. The motto behind the initiative is to benefit consumers, and also trade along the elevated competition between various oil firms, and strengthen the efficiency of oil firms subjected to the challenges of weak economy.
The Government of India has recently proposed a plan to deregulate prices of diesel prices; Toyota and Volkswagen India have welcomed the move, Raja N, the Senior Vice President and Director in marketing and sales department of Toyota Kirloskar Motor Limited has given its satisfied viewpoint on diesel price deregulation and said, it is welcome move, more specifically high-spirited festive season in India. Consumers can now more freely chose their diesel vehicles, and liberally choose the desired characteristics. The auto industry in India is on its pathway to recovery and the deregulation of diesel costs is an added layer to enhancement of auto economy.
The Director of Volkswagen Passenger Cars Michael Mayer stated that the market is emerging out of its depressed state, visible on positive market conditions such as affordable fuel prices and interest rates. The company is satisfied with the potential increase in customer sentiment, and is looking forward to attractive sales during the festive season.
The Government of India earlier announced its aim of regulating prices of diesel vehicles in India, the tables are now reversed, and the Government has announced a diesel deregulation scheme. The Indian unit of the established Japanese based firm Toyota Kirloskar Motor has maintained a strong profit drive hold in the country. The company considers Etios Liva hatchback and Etios sedan to be important models.
Toyota has built a range of profitable cars across various segments, its blockbuster hits are Innova multipurpose vehicle, Fortuner sport utility vehicle, and Corolla Altis sedan. The company has managed to sustain great fortunes on the back of just few models, but could not withhold the impact of recession.
Now with the deregulation of diesel prices there is going to be a mass crowd in many of the dealerships in the country, especially with the amazing Etios Liva and Etios facelift package. With just a diesel deregulation policy, the car atmosphere in India has become incredibly rhythmic.
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I am into the auto blogs field for quite a long time. Living my passion of reviewing cars.
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