Here’s what caused car sales to vroom in 2015-2016

Sales of passenger vehicles have been growing on the back of new launches. Be it Maruti, Hyundai or a Renualt-Nissan, the cars which are selling are the ones which were newly launched by them.

By: | Updated: June 13, 2016 6:46 AM
John Lawle, Joachim Wedler, China Association of Automobile Manufacturers A major reason for the long waiting period is that the manufacturers do not have the platform available to manufacture the vehicles as per the demand. Maruti, for instance, uses the same platform to make Swift and Baleno, which leads to constraints. (Reuters)

Sales of passenger vehicles have been growing on the back of new launches. Be it Maruti, Hyundai or a Renualt-Nissan, the cars which are selling are the ones which were newly launched by them. In fact, sales of once popular entry-level vehicles like Maruti’s Alto and WagonR have been declining, reports Shaikh Zoaib Saleem in New Delhi. In 2015-16, sales of passenger vehicles would have contracted 4% instead of the 7% growth witnessed had it not been for the new launches. Around 11% of the growth came from new launches.

While this sounds good for the manufacturers as well as the consumers, there's a pain point as well in this growth story. The waiting period for consumers to get their new cars has increased. If , for instance, a consumer wants the top-end models of Brezza, the newest offering from Maruti, the waiting period is around nine months. The popular hatchback, Baleno which was launched by the company in October 2015, still has a waiting period of six months.

Sales of Alto may be declining and there's no waiting period for it but a car of similar capacity, the Kwid by Renault, which was launched in September, has a waiting period of 3-4 months.

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A major reason for the long waiting period is that the manufacturers do not have the platform available to manufacture the vehicles as per the demand. Maruti, for instance, uses the same platform to make Swift and Baleno, which leads to constraints.

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