Flat Growth for Indian Car Market This Fiscal Year

As the global economic slowdown does not show signs of recovery so far, as anywhere else in the world, it is getting affected in the balance sheets of Indian auto makers too. But Maruti Suzuki India reported positive sales in the month of January. This is after five consecutive months of decline.

According to a senior executive of Society of Indian Automobile Manufacturers Association, Indian car market may register flat growth this fiscal.

Maruti's sales grew by 8.6% to 59,060 cars in January. But the total car sales in India declined by 3.2 % year-on-year to1.10 Lakh vehicles sold during the same time. Hyundai, the second largest car maker and Tata motors saw a decline of 13.5% and 9% respectively in January. Honda reported a 26% fall to 5773 vehicles sold in January. M&M too reported a fall of 17% to 17320 vehicles.

Exports showed growth of 13% to 21530 units of cars in January majorly contributed by Hyundai which gained 21% in the sales volume. Maruti reported a moderate 3% gain.

After the depreciation on commercial vehicles and excise duty cut announced by the government earlier , automobile industry is awaiting a third stimulus package. They expect this to improve the availability of finance and provide concessional interest rates to the auto sector. Such measures from the side of government could pull the auto industry out of a decline , thus contributing towards some incremental sales towards the end of the fiscal resulting in a flat growth.

Sources: http://blog.carazoo.com/2008/03/car-sales-gear-up-in-small-cities.html