INDIA: In December 2013, General Motors India reported a decline of product sales from 7, 067 units to 5,705 units sold from December 12 to December 13. This is almost 19.27 percent decline. The company sold 2,073 units of Beat model, 1,282 units of Sail model and 1,088 units of Enjoy model by Chevrolet in December 2013. The figures are not too impressive. There are many reasons behind this deteriorating situation.
Reasons behind decline in sales
According to the company, the last year failed to pick up as expected as a result of general economic downturn. Consumer sentiments also failed to improve which resulted in a steady decline in sale. The past year proved to be quite challenging for many automobile manufacturers, including General Motors India. Though, many companies offered excellent discounts and schemes to attract customers, but customer’s footfalls in showrooms failed to pickup as was expected.
Though, companies are quite positive about sales in the coming New Year, the overall economic situation may make scenario for the companies grim for the time being. The situation may perk up a little after a couple of months, but reasons like continued increase in prices of fuel, increasing rate of inflation, etc may keep this year equally challenging. This uncertainty in economic situation may offer a dampening effect on the automobile sector in the country. In order to overcome this bleak situation, the only way that seems feasible is stimulus package offered by the Government to give a boost to this struggling industry.
This is possible only after elections that are supposed to be held this year and when the new office comes into power. The automobile sector may suggest some ways to the new office considering which this struggling sector may get a new lease of life and things start looking up once again.