The Indian automobile industry is facing tough times. The industry's overall sales fell 4% during the last fiscal as compared to a growth of 13.5% during the previous year. Only some segments within the industry posted growth. Here’s what a finance portal had to say about the situation.
The post I read says -:
“The Indian automobile industry is fighting hard to keep driving on the growth lane. Only two of the four segments within it grew during the last fiscal and only one posting a double-digit growth. Passenger vehicles grew 12%, with the passenger car category growing a shade below it.
, which grew 11% during the period, says industry growth has been slower than expected and the reasons could also be due to the sub prime crisis in the US.
Other players like HS Lheem, MD, Hyundai Motor India, says, "Much less than expected I feel. Many IT cities like Hyderabad, Bangalore, and Chennai may be affected by subprime mortgages from US. It looks like industry demand is down but I hope that by Q2, Q3 it should recover."
And volumes in the commercial vehicles segment, also considered as a barometer of the economy fell over 4%. The figures may not give the actual picture, as the industry is moving towards multi-axle vehicles with better carrying capacity than the conventional trucks. Sales of medium and heavy commercial vehicles fell close to 2% and light commercial vehicles grew a little over 12%. Three-wheeler sales, which fell close to 10% also impacted overall industry growth”.
I guess after such a tough year, the Indian auto industry will have to devise new ways to fight the problems of rising inflation and interest rates to avoid a tougher year this time.
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