Another reason for the increase in the demand in the Indian auto market is also due to the increase in the price from automobile component makers.

Apollo Tyres has already announced their plans to increase the price of the types and the price hike is yet to be implemented, whereas Chennai based MRF Ltd has already increased the price of their tyres by 2.5 to 4 percent from August 31 2010 onwards.

Other type companies, Ceat and JK Tyre are also expected to hike their prices. The Managing Director for JK Tyre, A S Mehta has stated that they are currently watching and observing the market and the trend and would raise their tyre prices by 2 to 4 percent shortly. Even though Apollo Tyres has already announced its decisions to increase the price, they seem to be observing the market before deciding on the percent of hike.

The price hike of tyres has already been done by the tyre manufacturers in four stages starting from January 2010. The total price hike has been around 10 to 14 percent. Except for the hike in March which took place due to the increase in the excise duty, the main reasons for the hike in the prices were due to the increasing costs of natural rubber.

Natural rubber prices have gone up by 75 percent year on year as per the data from the rubber Board and currently in August 1 kg of rubber currently costs around Rs 179.52. In August last year however the prices were much lower and one kg of rubber was available at Rs 102.50. In July 2010 the rubber prices were at an all time high at Rs 181.15 per kg.

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Managing Director and CEO of Mercedes-Benz India Pvt. Ltd., Dr. Wilfried Aulbur said “Mercedes-showrooms have been designed with the whole family in mind. The objective is to engage people with the innovations and stories that have shaped automotive history and ignite young people’s passion for the future. At the same time, the premium segment is a statement of the lifestyle of the customers and Mercedes-Benz showrooms across the country reflect this approach of the brand. Our dealerships offer an experience far beyond car-ownership. They are a lifestyle statement complete with gaming consoles, designer accessories, high-end café, interactive virtual experience zones and drives total brand experience.”

State of the art customer care concept is extended by Mercedes Benz India to all its dealerships across the country.

These experiences include the range of exclusive cars displayed, the SLS AMG Play Station, which is the 3d simulator that offers a potential buyer first hand driving experience, the Mercedes Benz Experience zone, where the complete profile of the Mercedes Benz products were offered through interactive applications and other technical and specification details and videos at single touch, the BlueFi Technology where the customers could receive product contents through Bluetooth and finally the Mercedes magazines and accessories.

Inspired by Mercedes showcased the cars that were engineered with detail for luxury and immense passion. This new line was a tribute to the brand’s sophistication, style and elegance. Young, colorful and vibrant energy is now brought in while maintaining the class of the brand. These exclusively designed products are priced between Rs 3,500 and Rs 5,000 and are available at the dealerships and Manish Arora outlets.

As Mercedes and lifestyle go hand in hand, this fest offers a rewarding experience to technology fans, fashion enthusiasts and car aficionados.

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At an FICCI function, B S Meena, the Secretary for Ministry of Heavy Industries has commented that the government had projected that the country would reach the seventh position by 2016 while drafting the Automotive Mission plan.

However, this goal has now been achieved six years before the estimated time frame. B S Meena has also added that the country is expected to reach the top five positions within 2020.

As of now, China maintains its stance as the world’s largest vehicle manufacturer and it is followed by the United States of America in the second place. As per the Automotive Mission Plan 2016, the main aim is to clock a turnover of USD 145 billion in 2016 by the automotive sector. The other aim is to provide employment within the next 10 years to at least 25 million people.

In 2005 – 2006 the turnover f the automotive sector was at just USD 34 billion and close to 13.1 million people were being employed either directly or indirectly by the automotive sector.

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In today’s scenarios it is every auto manufacturers wish to enter the small car market in India and several foreign manufacturers who have ventured into this market are yet to overcome the biggest hurdle in this market, the price sensitive Indian buyer.

One such car maker who is finding it extremely difficult to sell its pricey small car, Honda Jazz, the compact car in the A2 segment is Honda Siel Cars India Ltd (HSCI) even when the demand for small cars is steadily rising in the Indian market.

As per the information for Society of Indian Automobile Manufacturers, the total sales of the A2 cars increased from 91,539 units last year to 116,558 units this year, which was a growth of 27%.  Ford India Pvt Ltd, was the biggest gainer this month with its compact versions of Fusion and Figo which sold a total of 6382 units when compared to just 47 units last month. Close to 34,000 bookings have been received by Ford for its small car Figo since March.
Other new entrants into the small car market, Nissan and Volkswagen have also witnessed rising sales in the A2 category this month. Polo, Volkswagen’s compact car sold 3,211 units and Micra, Nissan’s compact car sold 1,182 units this month.

However the losers in this A2 segment were Tata Motors, Fiat India automobiles Pvt Ltd and HSCI. Tata Motor’s Indica witnessed a dip in sales which fell from 9,598 units of last year to 7,531 units this year. Sales of Fiat too fell by 44 percent in August.

For Tata Motors and Fiat, the reason for decline in sales could be the loss of sheen as they were relatively older models, when compared to the newer models in the market. Honda Jazz has mainly lost out due to its pricing, while other small cars in the segment are available between Rs3.72 lakhs to 7 lakhs, Jazz starts from Rs 7.56 lakhs. This is one of the main reasons why the price sensitive India customer seems to have ditched the Jazz for other affordable small cars.

Another factor that posed a huge hurdle for the sales of Jazz was the launch of several value for money cars by the country’s largest car maker, Maruti Suzuki.

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However despite the growing sales within the country the exports have fallen by 7 percents, as all auto manufacturers are gearing up to meet the rising demand in the country, especially with the onset of the festive season. The Society of Indian automobile Manufacturers have released the numbers that in August the total car exports from India stood at just 37,952 units when compared to 40,901 units, last time this year. This is also coupled with the low demand of cars especially in the European markets and with companies like MSIL and Hyundai looking for new shores to market their products.

Another issue is that due to capacity crunches, companies like Volkswagen, Maruti and Ford are not able to meet the demands for their popular vehicles on time. In order to produce an additional 250,000 units, Maruti has already announced plans to build a new production plan at Manesar, which will help the automobile manufacturer, meet the growing demand in the Indian market. In order to meet the growing demand, Ford has also started another shift in its Chennai plant owning to the increase of its small car Figo’s sales numbers. The Small car just crossed the 40,000 mark. However Volkswagen has not planned any changes in its production plan to meet the rising demand as yet.

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