The last couple of years have been turbulent for the Indian automobile industry. A decline in volume sales, market instability and capacity overhang combined to create a gloomy outlook for this sector.
But the dust is now settling, and some categories within the automobile industry are showing signs of stabilization—and in some cases, even a gradual increase in sales. Still, the passenger car segment, in particular, needs a quick boost to profit. Given the existing capacity overhang, manufacturers may have to explore avenues other than volume sales to achieve this. One such avenue could be the sale of top-end variants.