Ford, Fiat and Volkswagen might delay the launch of their respective new small cars in India, due to a fall in the value of the rupee and overall slump in the economy.
The VW Up!, Ford and Fiat’s new small cars were expected to arrive in 2014 to compete with the Maruti A-Star, Hyundai i10 and others; however, there are reports that the projects may be delayed by six months to an year. The depreciating rupee, high petrol rates and inflation have seriously affected volumes and in turn profit margins – that are already lower in the small car segments.
The delay might also be due the recent visible trend that the Indian buyers are willing to pay premium to own a B-segment diesel variants over small cars. Unless there is more clarity on government stand on petrol and diesel prices, the manufactures won’t invest to develop diesel or alternative fuel cars, which might become a necessity even in this segment.
