Bumpy road ahead for carmakers as retail demand turns sluggish

The road ahead for carmakers could get slippery as retail demand grows sluggish, thanks to the combined effect of rising fuel prices, firming up of interest rates, and price increase by manufacturers. Despite a double-digit increase in wholesale (dispatches to dealerships) last month, companies are staying alert to the road ahead. With retail demand being on the downswing, some manufacturers are beginning to sound off on the demand challenges.

Korean carmaker Hyundai, the second-biggest player in the domestic car market, has raised prices by up to 2 per cent from June 1. The company admits to demand outlook being somewhat