The domestic auto industry is going through a crummy phase due to the economic slowdown.
Ford India reported a decline of 44 percent in its sales in February to 4,490 units. GM also declared that the sales figure has come down to 7,106 units depicting a down of 20 percent while Volkswagen's sales have declined by 8 percent. Passenger car sales have been slashed by 26 percent in February 2013 as compared to the sales in February 2012.This is the worst performance recorded since 2000.
The economic deceleration has made the car manufacturers slash prices and offer huge discounts to lure the customers. Many auto makers are offering huge discounts of up to 20 percent. The Volkswagen offer says that its Vento can be availed by making a down payment as low as one rupee and the rest of the amount can be paid after a year.
R.C. Bhargava, chairman of Maruti Suzuki, said "The industry is not going through a good phase. The trend can change only with better economic growth and more money in the hands of people."
The only segment which has recorded good sales in February is the SUV segment and reported 35 percent increase in the sales in the same month. Renault has fared in the domestic market by selling 6,723 units of its SUV - Duster in February.