When we spoke about the Indian growth story, mobile and cars were the poster boys...(apart from IT of course) every month we would quote the number of new mobile users being added and that we were the fastest growing mobile market in the world. Now with the slowdown and perhaps in a category like mobile the growth will not come from new subscribers. More about the mobile story in another post some time the focus is one falling car sales…I had written blog posts every time the sales of cars would hit a new high, (raining cars in India) so thought it was but appropriate to write about the first fall in car sales in a decade (Car sales crash first time in 10 years). The reasons for the fall in the sales include the increasing fuel prices, expectation that prices would fall, and of course the negative mindset that the consumers have got into.
My take on the sales in the car market is that, the conditions which were driving the sales of car for the last ten years have not changed much, lack of public transport, the status symbol associated with owing a four-wheeler, increased choice for the consumer. Only thing which is not working in the consumers favor is the ever increasing fuel cost but that many of us realize is part of the reality. We typically take the extremes while reacting to either a slow down or a growth, something similar to which happens in a stock market, market is at its peak, one finds small investor rushing into the market and when the market is at its lowest the small investors are typically found busy selling...
The auto market and the growth is there to stay, this a just small blip in the sales chart.
And in the meantime it might be best of times to buy a car, best deals possible are currently on offer..
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