CHENNAI: The automobile output is likely to rise by 9.6% during fiscal 2012-13, according to the data of Centre for Monitoring Indian Economy (CMIE). It is below the 10.6% growth projected for the same period in the past by CMIE.
The rise in prices of vehicle along with strong interest rates and high fuel prices, which raise the overall ownership costs of a vehicle, are few of the responsible reasons for this decline.
Moreover, commercial vehicle (CV) segment may grow at 8.5% during FY13 as against 19.8% growth in the past year. The fall in truck rentals along with stronger ownership costs is likely to effect growth in medium and heavy commercial vehicle output.