Car Sales rise seen in January
expected that this month sales of various cars may rise again, as many dealers are moving towards new stock after a clearing been done the previous month. There had been a 14% fall in the primary sales of the company in the month of December, it is after that time that the company is expecting a growth of 8-10 percent.
It is Large amount of discounts were offered by dealers the previous month so that they could attract the customers and further can find to invest in new plans. All this resulted in fewer stock tackings and resulted in forcing of car makers to stop the plants and reduce the production by 25-30%. According to some officials of the company a rise in secondary sales from customer to dealer is still required to be seen. Besides this some dealers are also in a belief that due to an inauspicious period in the Hindu calender most of the customers are not willing to buy these cars. Discounts have been made by the company by nearly 50% this same month and it is expected that the price hike may go up by nearly 2-3% more. Already prices of some cars have crossed over Rs 2000 for smaller cars and nearly over Rs 20,000 for the bigger cars. Sales will not increase untill interest rates are made down and further the availability of funds do not increase. Its another aspect that the car market has shown a slow down in the growth rates since the past gone January 2008. Before that period company was showing a growth rate in double digits and that too for nearly five years. It were high interest rates which affected the car sales of the company.