Growth projection lowered to 2-4% for FY12, following a dip in sales and ongoing strike at Maruti.
According to the revised estimates by Siam, the passenger car segment is expected to grow by 2-4 per cent this financial year, compared to the 10-12 per cent figures projected in July.
Sales in the passenger vehicles category, including utility vehicles and vans, are expected to grow by 4-6 per cent, against the 10-12 per cent estimated in July. This is the lowest growth rate in the last three years. Sales of passenger vehicles had grown by a mere 0.18 per cent in 2008-09.
S Sandilya, president, Siam said: “There is a general negative sentiment prevailing in the market which is impacting sales. Interest rates and fuel prices are going up. Besides, developments in Europe are also not encouraging.” The labour unrest at MSIL, too, has impacted production adversely, dragging down growth numbers. “Maruti Suzuki produces and sells 50 per cent of cars in the market. Any negative incidents happening at the company will obviously impact the industry,” said Sandilya.
Between April and September, domestic car sales declined by 1.36 per cent to 9,09,283 units from 9,21,812 units in the year-ago period. MSIL’s sales in this period declined by 9.17 per cent to 473,089 units. Siam, however, revised its projections marginally upward to 11-14 per cent for overall sales in the automobile industry, from 11-13 per cent announced earlier. Industry growth is expected to be driven primarily by two-wheelers and light commercial vehicles.
Sandilya said despite the sense of a slowdown in the market, India remained the second fastest growing passenger vehicles market in the world with 9.90 per cent increase in sales in the January-August period. Germany topped the list with 11.20 per cent rate. US, Brazil and China reported growth rates of 9.30 per cent, 7.50 per cent and 6.05 per cent growth, respectively.
More From This Section
India was the fourth fastest growing market in the world in the commercial vehicles segment, with an increase of 15.80 per cent in sales in the January-August. Germany topped the chart with 23.30 per cent growth.“The global economy is going through turbulent times, but the Indian economy is going strong. Besides, there is a good rainfall in this year. These are some positive factors,” said Sandilya, adding commodity prices and international crude prices are likely to soften in the coming months.
Domestic passenger car sales declined by 1.8 per cent to 1,65,925 units in September, 2011, from 1,68,959 units in the same month last year. While motorcycle sales in the country grew by 19.92 per cent during the month to 9,33,465 units, scooter sales rose 50.7 per cent to 231,710 units.
| BUMPY RIDE | |||||
| Category | 2010 - 11 Sales (% growth) | Projected growth in % | Apr–Sep FY12 Actual growth | ||
| 2011-12 | Jul-11 Revised forecast | Oct-11 Revised forecast | |||
| Passenger vehicles | 2,519,000 (29.00) | 16-18 | 10-12 | 4-6 | 1.84 |
| Two-wheelers | 1,790,000 (25.80) | 12-14 | 12-14 | 13-15 | 17.42 |
| Commercial vehicles | 676,000 (27.00) | 14-16 | 12-14 | 13-15 | 17.85 |
| Three-wheelers | 526,000 (19.50) | 9-11 | 8-10 | 4-6 | -0.04 |
| Overall industry | 5,513,156 (26.17) | 12-15 | 11-13 | 11-14 | 14.36 |
| The numbers are for sales in domestic market only. Source : Siam | |||||
Sales of commercial vehicles grew by 18.04 per cent to 70,634 units in the month under review, from 59,836 units in the year-ago period, Siam said.
Total sales of vehicles across categories registered a growth of 19.39 per cent to 15,71,342 units in September, against 13,16,118 units in the same month last year.