2013 looks stable for Indian auto sector: India Ratings

India Ratings and Research has revealed that the outlook for auto sector in the country looks stable for the year 2013. The report mentions that there will be growth in auto industry, but it will lower as compared to previous years.

2013 looks stable for Indian auto sector India RatingsPredictions for the Indian auto sector for the calendar year 2013, hint at a stable outlook with same scenario continuing into the New Year as were experienced in 2012. Few changes are predicted where growth and margins are concerned. The domestic auto industry is poised for muted growth both where passenger vehicles and commercial vehicles are concerned primarily due to the fact that structural weaknesses and over capacities abound.

India Ratings, Director Corporate, Deep N Mukherjee has given these projections where growth in the Indian auto sector is concerned. The study estimates that volume growth in the passenger vehicle segment will be at between 8 to 9 percent while more emphasis will be on sales of utility vehicles.

Cars and vans will see lower growth rates of between 2 to 3 percent and 0.5 to 1.5 percent respectively. Demand for light commercial vehicles is also likely to see 13 to 15 percent growth while medium to heavy commercial vehicles will be negative at 6 to 9 percent due to the fact that industrial activities will remain at current levels. For more information, scroll down.