Upturn in car sales expected from second half of 2014
With just one day to go to bid 2013 goodbye and welcome in 2014, the auto industry is poised to see the last of falling sales and hopes to see some improvement by the second half of 2014. This is being predicted due to an estimated fall in interest rates and deferred purchases which could result in increased sales.
Dun & Bradstreet have predicted that while immediate results may not be evident, there is likely to be an upturn in the auto industry by mid 2014 onward. Improvements in the economic environment, a slight fall in interest rates, increased infrastructure spending and various other factors have cemented the way for better sales ahead.
Exports are also expected to decline due to certain non tariff and duty agreements entered into by the EU with some African and Latin American countries. This move will see export environment in the country remaining challenging throughout 2014, as it will restrict the movement of some auto companies which have just commenced expanding their horizons.
In the mean time auto companies are trying to get rid of pending stocks by offering attractive discounts and special offers, while various auto companies have also announced price hikes from January 2014 due to increased prices of raw material and higher marketing costs.