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Car Audio Exportation to India Drops
Written by the Global Sales Team
Saturday, 15 September 2012, 12:30
The Car Audio Group’s exportation to India shrinks in August. The figures show that the stock radio purchases in India drop 23%, compared with that in July.
The Indian market is one of the biggest sales channels of the car radio products in these several years. In the past 10 months, the sales were keeping increasing but ended up a plunge in August.
“The stock audio business has been prosperous for quite a long time in India,” Joseph said, a senior officer in the Car Audio Group. “It is quite disappointed that the sales figures in August drop. In the past months, the car radios with car USB function are selling very well in India. We did not notice the plunge would happen in August.”
According to Joseph, the weakening sales are caused by several reasons. One of the major reasons is the fall in the August’s car purchases in India. “With the drop on car purchases, the demand of the car audio with car USB input become less,” Joseph said. “The weakening global economy also has a big influence on the sales. The Indian market cannot be immune to this worldwide problem.”
The industry data lent support to Joseph. In August, car sales in India dropped 19 percent, which was the very first decrease in 10 months. The car demand in India is decreasing.
The car sales plunge was due to the high interest rates, a vehicle tax surge and rising fuel prices. Therefore, the stock radio with the car USB function also suffered a weakening demand.
“We hope the Indian government will do something to control the situation,” Joseph said. “Unless the local economy is booming again, the situation of the car radio products will not improve in the short term. Furthermore, the previous vehicle tax is hoped to be introduced again, so that it can boom the car purchases. Additional measures are also required to offer more fuel price subsidy.”
The Indian government, however, is now tight on providing subsidies, as it has been under great pressure to reduce its fiscal deficit. Plus the high interest rates, Indian customers are not so enthused in the car purchases, left alone the car audio products with the car USB function.
According to the Car Audio Group’s forecast, the car purchases in India will continue to decrease until next spring. “This is not a good business environment for us at all,” Joseph said. “As a manufacturer of the car radio products with the car USB function, we must make some changes to cope with the current difficulties. We need to make some sales proposals with more discounts to attract the customer’s attention.”
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Last Updated on Saturday, 15 September 2012, 18:30