Saturday, August 15, 2009

Toyota Suffering from Economic Recession in India

It is not only Toyota but also Honda suffering during the time of economic recession in India. I am not surprised with this news because condition of Indian economy has not been good in the last one year. Hardly anyone now talks about high economic growth in the country. Export earning suffered a series of setbacks in 2009 so far. Even in the outsourcing sector, there is less optimism now. In such a time, most people do not want to think of buying a new car.

Hindu Business wrote:

The two leading Japanese car-makers — Honda and Toyota — saw the fortunes of their Indian operations dip in 2008-09, with Honda Siel Cars India Ltd reporting a loss for the year, while Toyota Kirloskar Motor Pvt Ltd saw its profit fall 41 per cent.

The vehicle sales of the two companies fell, resulting in a drop in income.

Both the companies have said in their annual reports that their operations were affected by the general economic slowdown, rising input costs and the weakening rupee.

I think that both Honda and Toyota should come with some inexpensive car models just for the Indian market. Maruti and Hyundai are successful in Indian market and both of them focus on inexpensive cars.