Growth to be stunted
Speaking to media persons recently, SIAM president S Sandilya said that factors like high interest rates, inflation, skyrocketing petrol prices coupled with dwindling purchase sentiments among consumers are still very much in action. Hence, SIAM feels that growth of the sector will be quite restricted. However, the auto body hinted that in FY13 the sector would witness an 11-13% increase.
In October 2011, SIAM had lowered the growth forecast for passenger car sales in 2011-12 to 2-4%. This was mostly attributed to low production count at the Maruti Suzuki India’s (MSI) plant, which shut down operations due to ongoing strike related to labour issues. This was a significant slash, considering SIAM had predicted a 10-12% growth in July 2011.
Minister of Urban Development Kamal Nath said while addressing the crowd at this year’s Auto Expo recently that arming consumers in the rural blocks with more disposable income will help drive the growth of the auto sector.
While commenting on the forecast for 2012-13, Mr Sandilya said that expectation for the sector could be fuelled by the fact that interest rates are unlikely to climb further in the near future. SIAM is also hopeful that fuel prices would also gain stability soon. The auto manufacturing industry is presently looking forward to the Union Budget for 2012-13 to help clear its hurdles.
Priyanka Roy Chowdhury |
Lowering expected figures for car sales to 0-2% for the current fiscal, Society of Indian Automobile Manufacturers (SIAM) has predicted that the dismal performance for the auto sector will prevail for some more time. This is the third time that the apex industry body of the Indian auto sector has lowered the forecast figures for the ongoing fiscal. Sales figure in the last calendar year had touched an all-time low and even the festive months had been glum too. 
