Car sales experiences the lowest growth in 9 years in India for 2012

Bleak economic outlook, slower expansion and high interest rates, have forced Indian car manufacturers to register their lowest growth figures in last nine years. Apart from these factors, rising fuel costs and a steeper line of credit have forced many customers to backtrack from buying vehicles during 2012.

Considering above mentioned factors, December 2012 registered a lowered sales growth of 12.5 per cent while sales growth for current financial year are lower by 0.33 per cent as compared to last years statistics. Car sales which grew consistently since 2004.  Sales of Tata motors Ltd and Maruti Suzuki, which are top brands in the Indian market, have been affected since global car markers like GM, Ford and Nissan are expanding their operations in India.

New car companies were given an opportunity to invest in Indian markets due to a 30 percent expansion in sales which was registered during 2010-11. However, their success was short-lived as rising car prices and increased fuel rates have scared away buyers who are majorly dependent on loan options to buy these vehicles. Sales growth registered for 2012 is a mere 2.2 percent which has forced SIAM (Society of Indian Automobile Manufacturers) to think of new ways to bolster the market condition. For more information, scroll down.

Auto News Release

Auto Industry performance indicates slowdown

Production

The cumulative production data for April-December 2012 shows production growth of only 2.16 percent over the same period last year. The industry produced 1,697,625 vehicles in December 2012 as against 1,677,588 in December 2011, with marginal growth at 1.19 percent.

Domestic Sales

The overall growth in domestic sales during April-December 2012 was 4.57 percent over the same period last year. However, in December 2012, overall sales grew only marginally by 2.77 percent over December 2011.

Passenger Vehicles segment grew at 8.37 percent during April-December 2012 over same period last year. Passenger Cars declined by -0.33 percent, Utility Vehicles grew by 59.10 percent and Vans grew by 3.71 percent during April-December 2012 as compared to the same period last year. However, in December 2012 passenger car sales fell by (-12.51) percent over December 2011. Total passenger vehicles sales also declined by (-1.13) percent in December 2012 over same month last year.

The overall Commercial Vehicles segment registered marginal growth of 0.74 percent in April-December 2012 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered decline at (-19.13) percent, Light Commercial Vehicles grew at 15.61 percent. In December 2012, M&HCVs sales declined by (-38.34) percent over December 2011.

Three Wheelers sales grew by 4.96 percent in April-December 2012. Passenger Carriers grew by 8.96 percent during April-December 2012 and Goods Carriers registered de-growth at (-10.29) percent during this period.

Two Wheelers registered a growth of only 4.09 percent during April-December 2012. Scooters, mopeds and motorcycles grew by 18.44 percent, 1.80 percent and 0.77 percent respectively over same period last year. However, in December 2012 Scooters and Motorcycles grew by 6.40 percent and 4.83 percent respectively, while mopeds declined by (-6.88) percent over the same period last year.

Exports

During April-December 2012, overall automobile exports registered de-growth of (-2.92) percent compared to the same period last year. Passenger Vehicles grew by 10.52 percent, while the other segments like Commercial Vehicles, Three Wheelers and Two Wheelers fell by -4.76 percent, -20.88 percent and -2.79 percent respectively. In December 2012 Passenger Vehicles, Two & Three wheelers segment grew by 31.59 percent 9.36 percent and 4.63 percent respectively, while Commercial Vehicles declined by -25.79 percent.