INDIA: SIAM lowers car sales forecast again
Car sales in India are expected to post their weakest growth in nine years as automakers struggle with with falling demand caused by high interest rates and rising ownership costs.
Sales have also been hit by slowing GDP growth, rising fuel prices and expensive credit, all of which have brought one of the world’s fastest growing markets to a halt.
The Society of Indian Automobile Manufacturers (SIAM) said: “Negative sentiment among lower-end customers by virtue of interest rates not coming down, high fuel charges; all these put together is hurting."
SIAM cut its car sales growth forecast for the fiscal year ending 31 March to zero to 1% this week, its third downgrade this financial year from an initial estimate of 10-12%.
The Indian market has grown every year since 2004 and the slowdown has led SIAM to appeal to the government for industry boosting measures, including cutting taxes on larger cars in March's federal budget.
It added: “Going by current trends, we do not think the industry will be able to recover in the fourth quarter (January-March) unless government extends full support."
The society also called on the central bank to reduce interest rates are currently 8%.
India's rapidly-growing middle class, largely responsible for car sales growth, depend on loans and credit for big purchases.
Car sales in December fell 12.5% year on year, the second straight monthly decline and the fourth in five months. Sales so far this financial year were down 0.33% year on year.
It sold around 1.06m units last year, having recovered quickly from the impact of worker violence at its Manesar factory in July. Output at the strike hit factory returned to normal in late October.
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
Maruti Suzuki sales in India shrank 7.8% in June from the previous year to 77,002 units, the company said. This followed a 14.4% drop in May....
Suzuki is launching its redesigned SX4 - its predecessor was developed and built jointly with Fiat - but the name might not stick in Europe because the new model is vastly different from the outgoing ...
Maruti Suzuki has decided to increase the use of local components in its vehicles as the decline of the rupee raises the cost of imported parts....
Singapore-based investment holding company, Gallant Venture, is offering to buy out minority investors in Indomobil Sukses International in an effort to consolidate control of one of Indonesia's large...
Sales of utility vehicles, including Renault's popular low-cost Duster compact SUV, have been strong in an otherwise dismal year for the Indian auto industry where passenger car sales fell for the sev...
- Volvo UK specs up seven seat XC90 redesign
- ANALYSIS: Mercedes smart brand's last chance?
- THE WEEK THAT WAS: Hobnobbing with the A-listers
- Briefing: 48V mild hybrids (3)
- ANALYSIS: Suzuki's new brand flagship - Vitara
- UK: Aston Martin to reveal future models strategy
- Geneva show list updated
- Audi plots 2020 expansion strategy
- GENEVA DEBUTS: Audi Q7 e-tron to be a diesel PHEV
- US: Cadillac's De Nysschen on future engine plans
- Global light vehicle engine technologies market- forecasts to 2029
- Global vehicle lightweighting - technology, trends and the future
- LMC Automotive's European Passenger Car Production Estimates - Latest Monthly Update
- Global electrified light vehicles market- forecasts to 2018
- PLDB - vehicle cycle plan database (annual subscription)