The Indian auto market reveals its diverse nature

There are a lot of things happening in the Indian auto market, which rightly reveals its dynamic nature as well as its fast paced quality. On one hand, several big names from the overseas car market are reporting high growth in the Indian terrain and are appreciating its potential. On the other hand, the established domestic car makers are slashing the prices of their products as a measure to curb the increasing problem of sales decline.

As an example of this diverse nature of the Indian auto market, the German luxury car giant Audi’s success can be taken into consideration, which recorded a massive 29% increase in its sales figures during the month of February and has reported that its SUV range holds the credit behind this success.

On the other hand, the home brad Tata Motors witness a unit sales decline by a whopping 69% in the same month, which also led it to announce that the company is slashing the prices by up to Rs 50,000 of its passenger car ranges of Indica and Manza.

While the good and bad sales figures of Audi and Tata shows the dissimilar nature of the Indian car market, both the car makers have to cope up with the recent budget, in which has increased the excise duty on sports utility vehicles from the previous 27% to the current 30%.

As Michael Perschke of Audi India rightly says that the company has no choice other than to pass the increased amount on to customers. Tata Motors has also increased the prices of its entire SUV range by up to Rs 11,000 following the excise duty hike in the Budget. However, according to the industry experts the consumers of top-end or luxury models can afford to pay the extra taxes and thus the luxury models sales figures are not likely get affected. This ultra-rich and elite class of India is also working behind the diverse nature of the Indian auto market.