Indian auto industry fails to meet targets as car sales decline for Jan 2013
The entire India auto industry has failed to achieve growth targets during the past few months. Customer sentiments remained muted while higher interest rates and price hikes by major automobile companies contributed to a more dismal picture. There was a drop in car sales during January 2013 to the tune of 13%.
Taking only domestic sales into account, the fiscal year to Jan 2013 period saw a 4.66% increase as compared to the same period in the previous year. Passenger vehicle and commercial vehicle sales were much lower than expectations. Passenger vehicle grew at 6.80% during April 2011 to January 2012. Passenger car sales dipped to -1.80% though there was increased demand for utility vehicles and vans during the same period with a 56.87% growth rate where utility vehicles were concerned, reports SIAM – Society of Indian Automobile Manufacturers.
Commercial vehicle segment recorded a -0.37% growth rate during April 2012 to January 2013. While light commercial vehicle grew at 15.48% during the period, heavy and medium commercial vehicle saw a drastic decline to -21.37%.
Two wheeler sales did comparatively well during the period April to January 2013 with a 4.53% increase in sales. During January 2013, scooters, motorcycles and mopeds saw a sales growth of 12.24%, 7.45% and 8.26% respectively.