Carmakers delay expansion plans

Carmakers in India are delaying their expansion plans. Maruti Suzuki India, leader in the passenger car market, has already pushed its domestic sales target by a year. It has now set a target of one million vehicles by 2011, instead of 2010. Toyota Kirloskar Motors is going slow on its new products and launches, citing slower growth in the domestic market. Chennai-based Ford Motor India has also not firmed up its expansion strategy despite announcing a fresh investment of Rs2,100 crore (US$451.56 million) in India. The Haryana-based Honda Motorcycle and Scooter India has already put off plans for a second plant due to the current market scenario. Many component makers have also adopted a wait and watch policy after many car manufacturers cut supply orders. Indian Machine Tools Manufacturers’ Association President N. K. Dhand said, “There is some set back on the domestic front and we hope it’s temporary. (August 23, 2008)