2012 rough year for auto sector in India
The Year 2012 opened with much hope and expectation for the auto industry in the country. It commenced with the 11th Delhi Auto Expo at…
The Year 2012 opened with much hope and expectation for the auto industry in the country. It commenced with the 11th Delhi Auto Expo at Pragati Maidan where a host of auto companies displayed their respective models expecting to get off to a flying start. However, that was not to be as rising fuel prices, escalating interest rates and a diffident economy brought the auto industry to a virtual standstill. This was coupled with tension and strife at the Maruti Suzuki, Manesar plant while recalls by Ford, Toyota and Honda also added to the woes.
New and interesting products were launched such as the Maruti Suzuki Ertiga and Renault Duster along with M&M Quanto and GMâ€™s Sail U-VA but as the year progressed, sales dipped in almost all segments which resulted in the Society of Indian Automobile Manufacturers (SIAM) to revise growth projection twice during the year. As SIAM had earlier predicted a 9 to 11 percent sales growth, it was forced to reduce it to just 1 to 3% in October this year.
Sales of cars this fiscal stands at just 12,40,688, up 1.28% as compared to sales in the same period in the previous year. While manufacturers had hopes for the festive season to witness a recovery, their hopes were dashed as in fact, there was a decline in demand to the tune of 8.25% during the month of November.