2nd UPDATE: World's Top Auto Makers Rush To Unveil Sedans, SUVs In India
January 05 2012 - 9:32AM
Dow Jones News
NEW DELHI (Dow Jones)--The world's top auto makers converged at
the auto expo in New Delhi to unveil new vehicles as they attempt
to reverse slowing demand in one of the world's potential growth
markets for automobiles and as markets in the West remain
sluggish.
In a marked departure from the previous edition of this biennial
show that was dominated mainly by the unveiling of small cars, this
year's show will witness Hyundai Motor Co. (005380.SE), Suzuki
Motor Corp. (7269.TO), Toyota Motor Corp. (TM), General Motors Co.
(GM), Jaguar Land Rover and others introduce 50 new vehicles, many
of which are sedans and utility vehicles.
Hyundai Thursday introduced the Sonata sedan and also made the
global premiere of its multi-purpose vehicle concept Hexa Space,
while Suzuki unveiled the XA Alpha, a four-meter long concept for a
compact sport-utility vehicle. On Friday, Suzuki will unveil the
Ertiga, a multi-purpose vehicle.
Nissan Motor Co. (7201.TO) introduced its multi-utility vehicle,
Evalia, at the show, while GM displayed new versions of its
Chevrolet Captiva and Tavera utility vehicles that will be sold
later this year.
Mahindra & Mahindra Ltd. (500520.BY) plans to start selling
the Rexton and Korando C SUVs of its South Korea unit, Ssangyong
Motor Co., later this year and in 2013, respectively.
Germany's Audi AG (NSU.XE) will introduce the Q3 SUV to add to
models such as the Q5 and the Q7. Its native peer Daimler AG
(DAI.XE) introduced the new M-Class SUV while BMW AG (BMW.XE)
introduced the high-performance M5 sedan and also plans to start
selling in India from March the hatchback, convertible and
Countryman models from its Mini brand.
Ford unveiled its EcoSport SUV, which has a 1.0-liter gasoline
engine, and will be produced in the country from later this year.
French car maker PSA Peugeot Citroen (UG.FR) said it may start
selling its cars in India ahead of its original target of 2014 by
importing the 508 sedan and the RCZ sports car. Its native peer
Renault SA (RNO.FR) will introduce its Duster SUV at the show.
Toyota introduced new versions of its Fortuner SUV as well as
the Innova multi-purpose vehicle.
The new offerings come as auto makers worldwide turn to emerging
markets such as China, India, Russia and Brazil--seen as key growth
markets compared with Europe and the U.S.
They also reflect the confidence that local and foreign
companies still have in India's auto market, which until last year
was one of the fastest-growing in the world, but has recently been
affected by a series of interest rate hikes and fuel price
increases.
Car sales in India grew for the first time in five months in
November, but the recovery is unlikely to salvage the industry,
which expects to miss its modest forecast of 2%-4% growth in sales
in the financial year through March.
"Our sales in this fiscal year will definitely be lower than
last year. It's difficult to predict by how much as we still have
three months to go," Maruti Suzuki Chief Executive Shinzo Nakanishi
told reporters.
Auto makers and analysts hope that growth will rebound in an
economy that's expected to swell 7%-7.5% this financial year.
"The past year has seen several constraints in high fuel prices
and high interest rates. But we are still optimistic on the
long-term potential of India and expect the slowdown to be
temporary," Nakanishi said.
Kumar Kandaswami, senior director at Deloitte Touche Tohmatsu
India Pvt. Ltd., said "the current slowdown is not here to stay as
the fundamentals of car sales growth, namely urbanisation and car
density, are still very attractive."
He said India has a higher chance than Brazil, China and Russia
to witness strong growth in car sales if inflation is controlled
and disposable incomes grow faster.
-By Nikhil Gulati and Santanu Choudhury, Dow Jones Newswires;
+91-11-4356-3305; santanu.choudhury@dowjones.com
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