Maruti Suzuki, India’s largest car manufacturer has announced its low expectations for the Indian auto industry and states that the festival season may not help boost car sales. According to Mr. Mayank Pareek Chief Operating Officer – Marketing & Sales Maruti Suzuki Indian, the carmaker doesn’t expect very strong sales given the current macro economic conditions in India.
Commenting on the reasons for this economic slowdown in the Indian auto industry, Mr. Pareek stated that the depreciation of the Indian rupee has put pressure on margins. He added that the discounts in the current year 2013 have been 20 percent higher as compared to discounts in 2012, but have not helped boost sales.
The carmaker holds positive expectations from the rural auto markets with respect to the favorable monsoon season and plans to reach out to more villages to boost sales. The Japanese automaker has also launched a new hatchback based on the WagonR platform namely the Stingray hatchback and expects the new car launch to increase economic activity in the Indian auto market.