Imported Car Sales Drop, Imports Become Frugal

Indian Auto manufacturers' car changing their strategy on import of completely built units (CBU) to the country. Sales of many CBU models have slumped in the first five months of this year.

Car manufacturers have postponed the launch of some car models too. Shipments are being order only against confirmed order basis.

Fiat India said it has deferred the launch of the costly hatchback Bravo as it does not see any market in the existing market conditions for imported models.

Speaking about it to newspersons, the Chief Executive Officer of Fiat India Automobiles, Mr. Rajeev Kapoor said "In the current market conditions it is difficult to forsee a future for imported models. Hence, all plans concerning Bravo have been postponed for the time being.

Meanwhile, Honda Siel Cars India has decided to bring in CBUs of the Honda CR-V only against the confirmed order basis. Honda Siel did not order any shipments in April-May months. The vice president (marketing) Mr Jnaneswar Sen said "It is a deliberate move to shift to shipments against confirmed to order basis. We were forced to hike up its prices by Rs 3.7 lakh as the rupee depreciated sharply against Japanese Yen and U.S. dollars. Since, the imported models are patronized by affluent class who are closely linked to the global economic scenario, sales of CBUs dropped drastically.

As per a report on imported item by the Central Government, there has been a drop of 72 percent in value on imported SUVs with engine displacement between 1,500-3,000 cc.

It has plunged to Rs 5.07 Crore for the fiscal year ended on in March 2009 compared to Rs 18.24 Crore in the previous fiscal year. However, the imported vehicles segment forms a miniscule share in the total passenger vehicle markets of India. It is less than one percent of the Indian car market. As such there has been very little concern about it the Indian car industry. All imports are happening in the luxury car market of India.