Festive revival in automobile land
After nearly 10 months that put a local downturn and a global slowdown in a double whammy that hurt consumer mood, the automobile industry is gearing up for an onslaught of demand in the festive season beginning September, reports Sumant Banerji.autos Updated: Aug 24, 2009 20:16 IST
After nearly 10 months that put a local downturn and a global slowdown in a double whammy that hurt consumer mood, the automobile industry is gearing up for an onslaught of demand in the festive season beginning September.
All major car and two wheeler manufacturers, Maruti Suzuki India Ltd, Hyundai Motor India, Honda Siel Cars, Hero Honda, Bajaj, TVS and Honda Motorcycle and Scooters, are ramping up production next month. Some like Maruti and Hyundai are doing it in anticipation of higher demand during Dussehra and Diwali, while others like Honda are also looking at clearing the backlog of some of their new launches.
“The increased production will clear backlog of our new models like the Jazz and new City,” said Jnaneshwar Sen, vice-president, marketing, Honda Siel Cars India. Honda currently produces 180-200 cars a day and with the second shift it will go up to over 300 cars a day.
Hyundai has already re-started third shift in the first plant on July 10 while the same would be done in the second plant from September 14 onwards.
The company will roll out 400 cars extra per day from mid-September from its current capacity of 2,000 a day.
Maruti Suzuki India Ltd has scaled up production at its Manesar plant to feed demand for the Swift and Dzire models. Two-wheeler manufacturers like Hero Honda, Bajaj and TVS are also expanding capacities.
“Today the financing situation has improved and we are on the other side of the hill,” said Venu Srinivasan, CMD, TVS.