Auto makers stare at full-year decline

HT Correspondent, Hindustan Times
New Delhi
First Published: 21:18 IST(11/2/2013)
Last Updated: 16:40 IST(12/2/2013)
Share  more.
Domestic passenger car sales fell by 12.45% at 173,420 units in January, the third consecutive decline monthly, raising chances of the industry recording a fall in sales in a fiscal for the first time in over a decade.

Car makers are now waiting for sops like reduction in excise duties and introduction of special schemes in the upcoming annual budget later this month.

A decline in sales may finally take the sheen off India's shining automobile market. Already, a number of manufacturers have put their investment plans on hold and may ultimately not invest at all if demand worsens.

http://www.hindustantimes.com/Images/Popup/2013/2/12_02_13-buss24b.jpg

"The overall economic situation is low and consumer sentiments are deeply negative despite the recent notional rate cuts by the Reserve Bank of India (RBI)," said Vishnu Mathur, director-general, Society of Indian Automobile Manufacturers (SIAM). "If things don't improve, there maybe an actual slowdown in investments in the sector."

Car sales are down 1.8% this year so far and needs a miracle or a very generous budget to record a growth by the end of March. It looks set to miss SIAM's own target of 0-1% growth rate for current fiscal. 

The sale of passenger vehicles declined by 4.62% in January. The only saviour was two wheelers whose sales grew by 8.5% during the month, helping a 5.3% growth in overall auto sale.


Share  more.
comment Note: By posting your comments here you agree to the terms and conditions of www.hindustantimes.com
comments powered by Disqus
Advertisement
Advertisement
more »