Global auto industry looks promising, India's auto sales likely to peak during festive season

By Prerna Mishra: The global automobile industry, which was severely hit by global slowdown, labour unrest in Maruti's Manesar plant and massive earthquake in March last year, seems to be getting back on track with the first six months of the calendar year representing a 6 per cent growth overall, as per a global auto report released recently.

Despite the fact that Eurozone crisis is still posing a threat to the industry as the PIGS nations (namely Portugal, Italy, Greece and Spain) are affecting the overall sales, the other economies are looking in advancement stage.

Talking about the BRIC block, the auto markets of two Asian economies, India and China, are also signaling growth prospects as Indian automobile market represented a rise of 7 per cent in its car sales in July 2012.

As per the industry experts, the remaining part of the calender year, starting from July, looks auspicious for the Indian auto industry as many new launches are lined up across various segments.

Industry experts are also pinning hopes from the upcoming festive season, which will commence from October. However, the labour unrest and lockout at Maruti Suzuki's Manesar plant will also affect the consolidated auto sales. But, as the then violence-hit facility at Manesar resumed its operations now, industry experts are also hopeful of promising results from country's largest domestic car maker.

Moreover, the continually increasing fuel prices is another matter of concern for the industry, but the continual suit of lowering auto loan rates by financial lenders may compensate the issue to an great extent.