Japanese auto giants are still reeling from the after effects of the Japan tragedy, with Honda and Toyota both taking a hit as the crisis in Japan led to a parts shortage hampering their production output. Even the Indian auto market looks grim for both these Japanese auto companies, because of looming uncertainties regarding the sourcing of auto components.
Toyota had already reduced their production output in India, with other Japanese companies like Nissan and Honda looking poised to follow suit. Business Standard has now reported that though Nissan is currently a minor player in India; Honda with a market share of 2.36 % is quite strong. Toyota also has a stronger market share with its Corolla Altis, with their new model Etios also having a huge demand.
With the production of these auto companies to likely be affected, rival companies which include leading car manufacture Maruti Suzuki, will most probably witness an increased demand for their cars, especially the SX4, according to the report. The report also noted that while Maruti has its headquarters in Japan, its Indian operations are mostly independent because of high localisation. Ford is said to be another contender to witness rise in sales with its Fiesta model.
According to the report, Chief General Manager of Marketing for Maruti Suzuki, Shashank Srivastava, said that they have witnessed a sharp growth in demand during the last couple of days for their SX4. They also expect the demand to increase further. The report also had a senior executive for Maruti saying that they did not face any supply constraints, but were closely monitoring the situation in Japan.
They might also look towards sourcing parts from Thailand and Germany. Meanwhile, the executive director of service, sales and marketing for Ford, Nigel Wark, said that they would need a few more days for assessing any change in consumer behaviour, adding that they had received a great response towards their sedans over the last couple of days.