Big cars are just not selling. The anticipation of a reduction in excise duty on bigger cars and the buzz around the launch of new products in the coming months has forced buyers to postpone their purchases. There has been a whopping 44.32% decline in sales in January?the first such decline in this segment in the past one year.
According to figures released by the Society of Indian Automobile Manufacturers, the dip in the sale of premium cars like the Honda Accord, Hyundai Sonata, Skoda Superb and Daimler Chrysler E-Class have shaved offtake of these cars to 353 units, against 634 units sold in the same month last year.
?With the Budget round the corner and expectations of a reduction in excise duty from 24% to 16%, which will eventually make cars cheaper, people are postponing their purchases until April,? says an industry expert.
Adds Jnaneswar Sen, senior general manager (marketing), Honda Siel Car India, ?The company has stopped production of the Honda Accord, which was the largest-selling car in the segment, and this has pulled down growth in the premium segment.?
?Moreover with new products like the eighth generation Accord and the new Toyota Corolla expected to hit the roads in the first quarter of 2008-09, people have adopted a wait-and-watch attitude before they decide to shell out for their dream cars,? says an expert, adding that the turmoil in the stock market has also kept retail investors away from purchases of luxury items.