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New car models keeping auto market alive

New car models have continuously brought excitement into the already suffering Indian auto sector in the last one-quarter. They have been successful to an extent as more customers have walked into showrooms and gone out with a car.

Since car sales started sliding from mid 2008, the industry had delivered new models at regular intervals.

Maruti launched the ‘A Star’ in November 2008 and has managed to sell 22,000 units so far. Hyundai’s premium hatch the i20 has sold 6,000 units since its December debut.

The Mahindra Xylo has managed 13,000 bookings within 3 months and the refreshed Scorpio introduced just last month has snagged 3200 buyers already.

“Lot of people had questioned after the launch of Xylo whether the Scorpio share will get cannabalised and will the Scorpio sales come down significantly. I must say that the Scorpio share will be 20-25 per cent canabalised,” said Pawan Goenka, president, Automotive, M&M.

Cars like the Fiat Linea and Skoda Superb have also managed to shake things up but has this excitement translated to overall industry sales moving up?

“Yes, new car launches always add to the growth within each segment but in overall terms I don’t think the new launches are adding to the growth that we are seeing in the market. If you compare what happened in Q3 of 2009 where we had seen a drop in volumes and now we are seeing a comeback in the Q4, so I don’t believe that is because of the new car contribution,” said Rakesh Batra, partner, Ernst & Young.

So new cars will keep the buzz going for Motown which means the launching of new models will continue in the coming months.

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