Yes, Africans will now be sold these very cars from India.But the business model is defective as even Africa will be saturated with affordable cars there. Encouraging consumption with static or decreasing income is not a good sign. The world is yet to come out of the valley it fell in 2008 precisely for this reason. Hope the Nano`s and Maruti`s will keep the industry limping along for a while longer before collapse.
The increased or even temporarily saturated population of vehicles of both 2 wheelers and four wheelers can not run with empty fuel tank. So the vehicle owners has to feed the vehicle`s fuel tanks daily. Hence the prosperous of oil exploring/ refining companies would be last longer. Also the freedom given to oil companies would be an added advantage for their better prosperity. A good opportunity for deep fishing in those scrips.
Dear netdo, one more fact may be an appropriate one. Now a days the strength of vehicles both 2 wheelers and four wheelers seems to think that all who are affordable to own a vehicle have already owned. That is the population of vehicles comes to a saturation point. Also replacing the old vehicles by Euro emission vehicles also approaching to saturation point. If the same would be correct, then the fate of auto industries would be utter dark. The only remedial measure is to invent green option vehicle that too at cheaper cost. The other possible remedial is based on the fact that still there are thicker population who are traveling in public transport. They can become vehicle owners, if there financial status would be improved. This is possible only under any economy development from now onwards. Without global economy development, we can not even imagine of our developments. Hence no doubt FIIs having global funds are the major key factor in this matter. So nothing is hopeless. The sun will rise again after the sunset. we will take advantage of the sun set to our favor. It is very pleasure as you have initiated to deal in this topic. Best wishes for profitable investments. Make others happy hence be happy yourself.
Dear netdo, yesterday, along my relative I went to a two wheeler dealer point to collect some documents regarding insurance cover and RC document for his newly purchased two wheeler vehicle few months back. There we spoke casually with the officials present there, about the market conditions. They report that the sale strength becomes shrink drastically. This trend is common all over the country. Because weak rain fall, heavy summer draining the ground water level to dry, is causing the farm/agri sector affairs to more or less halt. They are becoming more and more costlier. Cattle feed cost raises 5-10 folds. Food grains cost too raised steeply. Generally the rainfall has stronger influence over the overall stock market. It is fact that in any year if the rain fall would be lower, then the stock market will fall down, more particularly, the auto scrips will be affected immediately and heavily. No doubt the FII` attitude add fuel to the diminishing market. Hence in such a grim scenario, thinking as "seriously doubt any global remittance in to India takes place for the purchase of Swift thus benefitting Maruti under any economic condition" may be a spontaneous one.
Swift car is amazing product in the indian automobile industry in the last 2 decades. It could maintain almost 8 - 9 years without any price discount but with gradual rises. I am big fan of this car for it`s smooth operations, style and comfort. It is great car to Maruti to introduct Desire with the same product and survive in the competition in Sedan market. Other wise after Baleno, Sx4 failure to capture the buyers, it would have been a wash out in that segment for Maruti. I am sure , prior to strike at Manesar plant, Maruti used to as many cars as all other car manufactures put together sells, will be able to revive this great product. But it is a miracle if Maruti maintains such high market share in the days to come.
No. I think time has come for auto industry to go bust especially for four wheeler segment. The have expanded mindlessly thinking of boom in middle income group but not factoring in road conditions and fuel price hikes. Today, it is a nightmare to drive through the roads of any major Indian city. The unruly vehicular traffic, the noise pollution, the crowded roads, the parking woes all make road driving to be avoided.
Suzuki is not truly a world beater in cars. With choice driving sales the Indian market will ;follow world patterns with European cars finding greater demand from people who want a more premium feel to their car and Toyota building a stronge4 base. Companies such as maritime ill lose shares and Tatas will probably exit passenger cars with the rubbish they`re selling rejected by the masses.