Indian auto industry sees reduced demand for April-November 2012: Cites rising fuel costs and inflation as main culprits
Rising fuel prices, high interest rates, inflation and an adverse economic crisis has lead to a slowdown of industrial activity in the country. All these…
Rising fuel prices, high interest rates, inflation and an adverse economic crisis has lead to a slowdown of industrial activity in the country. All these factors combined together have affected domestic MHCV sales. Sales during the period July to November 2012 has dipped by 12.5% as compared to sales in the period January to June 2012. Passenger carriers, buses and trucks have all been seeing decreased demand and according to Society of Indian Automobile Manufacturers this trend is likely to continue. The Government of India has promised immediate steps to ensure economy improvement but this is easier said than done.
Latest projections estimate that the industry is likely to grow only by 5 to 7 percent during the 2012-13 financial year with heavy and medium goods carriers likely to be the worst affected with volumes down 11 to 13 percent during the year as compared to the same period in the previous year. April to November 2012 showed production growth to the tune of 4.80 percent as compared to the same period in 2011 with 1,646,495 units produced in November 2012 as against 1,816,977 units produced in November 2011.
Domestic sales were also not as per expectations with sales during April to November 2012 period at just 4.80 percent higher than the same period in 2011. Besides domestic sales, exports to suffered during the April to November 2012 period with -4.57 percent growth as compared to exports in the same period in the previous year.