Automobile Industries - "The New Cacoethes of Indians"

            Last three days, I continuously listning about various automobile companies' enormous performance. In three days break I've seen many Indian news channels, all were talking about new emerging star amongst industries like Power, Infrastructure, Banking and Pharma. Today evening when I was coming back from college I saw 'Toyota Prius' on Ahmedabad most famous road - S.G.Highway, which inspired me to write this blog.
             It's really delirious approach of Indians towards buying vehicles for their comfort or showing their status in society. Whatever reason is Automobile sector is my and I am sure most of my young friends' favourite sector. Although Finance Minister denoted about to heighten the duties on Automobile products but it will not cause any declination in sales of Automobiles, only thing harrasing this sector is increasing Fuel prices (but it is necessary to fluctuate people from fuel run vehicles to battery charged vehicles).

Last Month For Automobile Sector
             Month of February was remained frightful for Automobiles as some of the hghest sales record was came in this month. I think in the season of recession such sales are recorded so this month always be remenber as 'Golden Month'. This year both months remained nice Hyundai, Maruti, TATA, Bajaj, etc. shown sales increase more than 40%.

Some record breaking sales of Indian Automobiles are as under:

• Maruti Suzuki India LTD. sold a total of 96,650 vehicles in Feb. 2010 which also includes 11,885 vehicles exported. Over all Maruti Suzuki shown 58.6% hike in sales.
• Hundai  also sold 54,617 vehicles and recorded 70% hike.
• Tata and Bajaj also in queue of recording their high sales like 62% and 77% respectively.
• Mahindra's Domestic sales increased by 35.7%, where as their export increased by 228.5%. This is just Wow.
• Toyota India recorded 101% growth with selling 5993 vehicles in all categories.

Mind Blowing Event By Mahindra
         
            Also last month remained as adventurous month for SUV 4*4 owners. In desert of Rajsthan Mahindra Automobiles had arranged a 'Adventurous Desert Event' for SUV owners. This was open invitation for all passionate drivers across the country, they can bring their Scorpio, Bolero, Aarmada, Xylo for this event. In this events all the participents were provided with trophy and certificates by Mahindra.

Reaons of Sales hike in Automobile Sector

1. Main reason of increased sales may be increase in thebasic payroll, revised salary scales by Central Govt. Of India. According to this payroll companies and State Goverments also adjusted their employee's payroll. This impact is shown now, people have more money to spend and the car is the first prefference for Indian families to show their wealth.
2. Auto Show in Delhi also may be one important reason for this increased sales. I can say that almost all comanies of South-East Asia and all major companies of the world presnted their best and up coming models in the Auto show.
3. Last month all the companies had conentrated on the Indian Models i.e. Indians likes small cars to drive in high traffic areas. I can say this because lots of small cars models launched during first two months of 2010. VW's Bettle and Polo; Chevrolet Beat; Hyundai's new model of Getz; Maruti's new sports model of A-Star, Ritz and Eco; etc.
4. Indians are the top buyers of two wheelers in the world. They always attratcted towards it due to many reasons. Last month Bajaj launched Pulsar 135CC DTS-i bike, Honda launched its New Activa, Mahindra launched two gearless scooters named Rodeo and Duro

Up coming monnths for automobile industry

• TVS motor company announced in the Nov, 2009 that they are coming with two new models. They are about to launch TVS Jive 110CC motorbike and auto geared TVS Wego.
• Relio Quick auto mall 2010 Mumbai from 5th to 7th March will show SUVs, ATVs, new models of cars and bikes.
• Honda is going to launch new Accord V-6 in India. Honda Accord has its own class in attracting luxurious customers and it continuously succeeding
• To compete with the Tata's Nano, Maruti decided to launnch one lac rupee car Suzuki Cervo. It seems tough competitor for Tata Nano as this car is more featured than Tata's.
• Again Hona want to experiment with its luxurious cars City and Civic. They are coming with updated version and sports version for both the models.
• Toyota is going to launch its hybrid Sedan, Toyota Prius in Q2 of FY 09-10. primararily it launched as testing in some cities.
• Tata has shown its new version of Tata Safari at Delhi Auto Expo, but model wass covered with cloth only head and tail lights were visible. They said this model will be launched in the middle of 2010.
• Nissan coming with their small car March in March 2010

         
           This all has shown drastic effect on stock prices of each of the company's share. Tata, Maruti Suzuki, Bajaj, Hero Honda sharea are outperforming continuously from last few days. yesterday Tata motors was grew by 10% and today also it has shown hike by 1.5%. Finance Minister denoted in his about to increase in cost of cars but in form of componsate prices today Maruti, Ford India, Tata has cut down basic cost of their models so prices will be compansated which shows they want to sustain this sales increase for lon span of time. Because of which Investors should invest in automobile shares without any fear.