In 2018, Tata Motors’s sales have grown by 32%. The brand is growing at a rate that is higher than the overall performance of the India auto industry, as well as let alone other carmakers like Maruti or Hyundai.
The outlook of the automobile industry is not very optimistic, especially with the ongoing downward trend in growth rate. Until now, the growth rate of the whole industry in 2018 stands at 6.4%, marking the lowest point in the last three years. Even the big brother of the auto industry, Maruti Suzuki, has to face a downward in sales growth which falls from 15% in 2017 to 10% in 2018 (Jan-Oct). Hyundai, the second largest manufacturers remains at the same growth rate. Other brands that are also affected by this trend include Renault, Honda, Datsun, Skoda, Nissan and Volkswagen.
Tata Nexon has contributed to the growth of the Tata in 2018
On the other hands, Tata Motor leads the chart with the highest positive change in growth rate thanks to the good performance of the Nexon and Tiago. Next year, Tata is going to release Tata Harrier and the 45X which are expected to boost the sales.
Some few names that successfully fight against the downward spiral of the industry are Ford, Toyota and Mahindra. All of them has quite a few moments this year with some successful models, for example, Ford with the Freestyle and EcoSport facelift, Toyota with the Innova, Mahindra with the newly-launched Marazzo.
The upcoming year might be just a further stagnant period. As the general election will take place in 2020, causing some certain changes which might affect consumer sentiment, it will be a real challenge for the carmakers. Moreover, 2020 will also be the year that the new BSVI emission norms go into effect. The upcoming norms impose a higher standard on car’s quality and its impact on the environment. To meet the new standard, the manufacturers have to adopt more advanced technologies and features, and it is unavoidable for them to raise the price, which will surely dampen the sales.
Some other factors involved are high-interest rate, increasing fuel prices and depreciation of Rupee. On a positive note, it will also mean that carmakers will introduce more discount to promote sales performance. Especially with the upcoming BS-VI, they will try to clear up all the old stock before the norms take effect.
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