With plunging domestic sales, automakers such Tata Motors and Maruti Suzuki have cut production of several of its variants. It is to be noted that sales of passenger vehicles have been hurt with rising interest rate and cost of fuels. However, auto makers are hoping that the series of new launches will propel sales and help them to generate revenues. It is expected that the car market will revive with a series of new launches such as MSI’s Swift, Volkswagen’s Jetta and Honda’s new Jazz and Brio.
It is to be noted that last week, Maruti Suzuki India had cut down production of several of its models including Alto by 5% due to slump in demand in the domestic market. Domestic sales of Tata Motors were down 43.13% while MSI’s car production was down by 21.08%. Experts are also hopeful that during the market will also revive with the onset of the festive season when people make new purchases. In July, the sales of domestic passenger cars fell by nearly 16% for the first time after witnessing growth for a period of 30 months.