Car sales can see encouraging growth in 2012-13 though it may still be slow in the current fiscal due to negative economic sentiments, the Society of Indian Automobile Manufacturers (SIAM) said here on Tuesday while releasing the Indian automobiles sales figures for 2011, which recorded 14.25 per cent growth.
“The factors that are affecting the automobile industry such as high interest rates, inflation, high petrol prices and negative economic sentiments are still prevalent. Hence, taking those into consideration, we see growth in the ongoing fiscal to be lower from the previous forecast,” SIAM President S. Sandilya told journalists here.
SIAM has said car sales growth would be around 2 per cent in the current fiscal, which might go up to 11-13 per cent in 2012-13. In 2011-12, passenger cars sales has been pegged at 0-2 per cent, two-wheelers at 13-15 per cent and commercial vehicles at 18-20 per cent.
ADVERTISEMENT
Giving projections for 2012-13, Mr. Sandilya said: “We don't foresee interest rates going up further in the next fiscal. Also, there is expectation of stability on the fuel prices and all the other indicators are positive. The auto industry is expecting the Reserve Bank of India to reduce interest rates by 250-500 basis points in the next fiscal.” Based on these assumptions, SIAM said the passenger cars sales will grow by 11-13 per cent, commercial vehicles at 12-14 per cent, two-wheelers at 11-14 per cent and three-wheelers at 6-9 per cent in the next fiscal. “Overall, we see the domestic auto industry growing by 10-12 per cent in the next fiscal,” he added. Meanwhile, in 2011 sales of the overall Indian automobile sector increased by 14.25 per cent to 1.69-crore units from 1.48-crore units in 2010. Passenger car sales went up by 4.24 per cent to 19.46-lakh units from 18.67-lakh units in 2010, two-wheeler sales by 16.22 per cent to 1.30-crore units and Three-wheeler sales by 4.74 per cent to 5.25-lakh units.