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Car sales expected to grow by up to 13% in FY13: SIAM
Keeping unfavourable condition in mind SIAM on Tuesday lowered its sales forecast to 0-2 per cent for the current fiscal but also added that the same could grow 13 per cent in the next fiscal.
“The factors that are affecting the automobile industry such as high interest rates, inflation, high petrol prices and negative economic sentiments are still prevalent. Hence, taking those into consideration we see growth in the ongoing fiscal to be lower from the previous forecast,” Society of Indian Automobile Manufacturers (SIAM) S Sandilya told reporters at the 11th Auto Expo here.
As per the latest revised forecast, the overall automobile industry is expected to grow by 11-13 per cent this fiscal.
The same for passenger cars has been pegged at 0-2 per cent, while that of two-wheelers are at 13-15 per cent and that of commercial vehicles at 18-20 per cent. Auto sales slumped as RBI changed policy rates for thirteen times since March 2010 making retail loans expensive.
SIAM had already lowered its forecast twice. The auto body, in October last year had significantly lowered passenger car sales growth forecast for 2011-12 to 2-4 per cent.
Commenting on the forecast for fiscal 2012-13, Sandilya said: “We don’t foresee interest rates going up further in the next fiscal. Also, there is expectation of stability on the fuel prices and all the other indicators are positive”.
He further said the auto industry is expecting RBI to reduce interest rates by 250-500 basis points in the next fiscal.
Based on these assumptions, SIAM said while the passenger cars sales will grow by 11-13 per cent in FY13, commercial vehicles will witness 12-14 per cent growth. The two-wheeler segment is pegged to rise by 11-14 per cent and three-wheeler segment by 6-9 per cent.
Meanwhile, auto sales jumped 8.49 per cent in Decmber 2011 on the back of heavy discounts and fear that carmkers would revise prices upawards in the new year.
Keeping unfavourable condition in mind SIAM on Tuesday lowered its sales forecast to 0-2 per cent for the current fiscal but also added that the same could grow 13 per cent in the next fiscal.
“The factors that are affecting the automobile industry such as high interest rates, inflation, high petrol prices and negative economic sentiments are still prevalent. Hence, taking those into consideration we see growth in the ongoing fiscal to be lower from the previous forecast,” Society of Indian Automobile Manufacturers (SIAM) S Sandilya told reporters at the 11th Auto Expo here.
As per the latest revised forecast, the overall automobile industry is expected to grow by 11-13 per cent this fiscal.
The same for passenger cars has been pegged at 0-2 per cent, while that of two-wheelers are at 13-15 per cent and that of commercial vehicles at 18-20 per cent. Auto sales slumped as RBI changed policy rates for thirteen times since March 2010 making retail loans expensive.
SIAM had already lowered its forecast twice. The auto body, in October last year had significantly lowered passenger car sales growth forecast for 2011-12 to 2-4 per cent.
Commenting on the forecast for fiscal 2012-13, Sandilya said: “We don’t foresee interest rates going up further in the next fiscal. Also, there is expectation of stability on the fuel prices and all the other indicators are positive”.
He further said the auto industry is expecting RBI to reduce interest rates by 250-500 basis points in the next fiscal.
Based on these assumptions, SIAM said while the passenger cars sales will grow by 11-13 per cent in FY13, commercial vehicles will witness 12-14 per cent growth. The two-wheeler segment is pegged to rise by 11-14 per cent and three-wheeler segment by 6-9 per cent.
Meanwhile, auto sales jumped 8.49 per cent in Decmber 2011 on the back of heavy discounts and fear that carmkers would revise prices upawards in the new year.
