Hope for better
The sector instils hope in the expectation that 2012 will see sales grow moderately, nudged ahead by healthy growth prospects and a positive movement foreseen in the nation’s economy. According to the statistics shared in a sector report drawn up by global consulting firm Dun and Bradstreet, after witnessing a 30.8% surge in sales in 2010, the Indian automobile sector’s growth had dipped down to a paltry 4.6% during the January- November, 2011 period.
According to Sanket Arouje, Leader - Operations – Economic Analysis Group – Dun & Bradstreet India, “For 2012, the overall economic growth indicators remain positive auguring well for the automobile industry. Expectation is that the deferred purchases will get converted into actual sales driven by steady economic growth and strong industrial activity.”
The expected moderation in interest rates would also give the much-needed boost to sales in the upcoming year and the industry, as a whole touted to gain significantly from initiatives in infrastructure development and improved road infrastructure.
A year to forget
Anshu Bajaj, proprietor of a small sized auto showroom based in Nagpur said, “It is sad that a year that began with a bang fizzled out midway, with car sales posting the steepest fall in over 11 years. This was a year marred by strikes—2011 will be one that the Indian automobile industry would like to forget in a hurry.
Talking about strikes, the country’s leading auto maker Maruti Suzuki India (MSI) was mired in one of the most talked about and controversial strikes in its history. The high profile strike that unfolded in front of the entire nation halted production processes of the company for many days, before reaching any conclusion. This significantly impacted the production and sales figures of the automobile industry, during the specified time period.
According to Dun and Bradstreet’s report, vehicle exports will remain on growth trajectory and exports of automobiles is expected to grow strongly in 2012- even though the industry may not be able to sustain the high growth (27-33%) recorded in the recent previous years. Considering the set back that the sector has encountered this year, it will certainly take some time to get back on to its feet.
The report further stated that the two-wheelers segment will dominate with a major share in total vehicle exports from India, in 2012. However, almost all the segments are expected to witness healthy performance. The report also suggested that increased exports could be achieved by the automobile industry by shifting focus to emerging markets like South Asian Association for Regional Cooperation—Pakistan, Nepal, Afghanistan, Maldives, Bhutan, Maldives, Bangladesh and Sri Lanka—apart from Brazil, Africa, Indonesia and other new and emerging markets.
Priyanka Roy Chowdhury |
With the year ending on a faltering note for the Indian auto industry, the question on the mind of industry is whether the next year will be able to offer a smooth road for the sector to vroom through. Almost through the midway of this year, the auto industry was hit by poor sales and plagued by inflation woes. 
