The automobile companies in India are now facing the consequences of economic slowdown. This combined with already executed expansion plans has put these companies in a difficult situation i.e. production surpassing the demand. This has resulted into piling of unsold cars. Total number of unsold new cars is 300,000 in India as of May 2012; out of which 200,000 are petrol cars and rest being diesel driven ones. While it was already difficult to sell petrol cars considering the high petrol prices and cheaper diesel, now the diesel cars are also going the same way on account of economic slowdown and moreover high interest rates for auto loan.
Some companies like Tata Motors and Volkswagen have decreased their production by regularly shutting down their plants. Some have moved from 6 day per week to 5 day per week production. Some are raining huge discounts on petrol cars. Others are guaranteeing protection from petrol price hike for a year or so.
Nothing is better than this time to buy a new car, particularly petrol one.
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