Car companies hopeful of upcoming festive season: expect to see revived sales following year long slowdown

High interest rates, uncertain economic conditions and escalating fuel prices adversely affected sales of almost all auto companies in the country. Growth was lower than…

High interest rates, uncertain economic conditions and escalating fuel prices adversely affected sales of almost all auto companies in the country. Growth was lower than previous year as buyers stayed clear of auto showrooms. The festive season round the corner is when auto companies expect to convert customer’s interest into sales but it remains to be seen whether this trend will continue past the festive season or not.

Data received for the period April to October 2012 shows production growth increase of only 4.12% over the same period last year. The auto sector produced 1,829,490 units in October 2012 as compared to 1,596,500 units in October 2011, a growth of 15%. Sales in India during the period April to October 2012 increased 5.26% over the previous year’s figures, though taking the month of October 2012 alone sales increased 14.81% over those experienced in October 2011.

Where sales in Passenger Vehicle segment was concerned, the period April to October 2012 saw a 10.53% rise in sales. The month of October 2012 alone saw passenger sales increase by 23.09% over sales in October 2011. Commercial Vehicle sales too recorded a 4.26% growth in the period April to October 2012 though Medium and Heavy Commercial Vehicles registered negative growth to the tune of -13.99% but Light Commercial Vehicles increased 18.19% in the same period.