Indian auto market hopes to clock growth in coming quarters led by monsoon
By Songbedna Bauri: The auto players are pinning their hopes on monsoons in India as it will help them to register growth in the upcoming quarters of the ongoing financial year. It is believed that the global slowdown is impacting the auto industry in a major way and is also causing immense pressure on the sector.
Although, Indian auto industry is aware about the effect of a delayed and deficient monsoon, but it is hoping against odds that sales won’t get impacted during this time. It is believed that the industry will take prompt actions when the situation arrives.
It is widely known that a slow monsoon may directly effect two-wheeler, utility vehicle and tractor sales. Moreover, the poor farm production along with the consistent decline in transportation demand may harm the commercial vehicle sales in the later months.
Industry analysts are of the opinion that in the recent times, the demand has been impacted due to various factors like petrol prices, global economic climate coupled with strong financing rates.
Recently, industry body Society of Indian Automobile Manufacturers (SIAM) lowered its full-year car sales in the range of 9-11% as compared to past prediction of 10-12%.
Although many experts are of the opinion that the reduction could have been even higher since sales grew just 5% in the first quarter (April-June 2012-13), it is believed that since monsoon reached late and is taking time to gain pace this year, it is expected to stay below normal throughout the season.
Reports suggest that the overall car sales volumes during June was at 1.55 lakh units as compared to 1.43 lakh units in the same month last year.
In June, two-wheelers sales clocked 9% jump since motorcycle volumes grew only 7%. Market experts are of the opinion that Indian two-wheeler market needs to see good monsoon since sales to an extent depends on the income in rural India.
