Domestic car industry sniffed a turnaround in January with a 7.2% growth in sales during the month, the highest monthly growth rate it has logged since the start of the fiscal year in April. The possibility of a growth for the full fiscal that ends in March, however, remains low raising the
spectre of a yearly decline for the first time in a decade.
Industry body Society of Indian Automobile Manufacturers (SIAM) has already revised its sales growth target for the year thrice. That target now is at 0-2%. So far between car sales have declined by 1.2% in Apr-Jan period. “Car segment is significantly down till now. We now need double digit growth in the next 2 months to cover up,” said Vishnu Mathur, director general, SIAM.
Such a jump is unlikely as February is traditionally a lean month and with the Budget postponed till March, momentum is expected to remain low till then.
