Friday, August 08, 2014
By Manoj Kumawat
Car sales to witness growth from 5 – 10% during FY 2015
Signalling revival in demand, domestic car sales grew for the third month in succession in July with a rise of 5.04 per cent, prompting industry body SIAM to hope for 5-10 per cent increase this fiscal. According to the data released by Society of Indian Automobile Manufacturers (SIAM), domestic passenger car sales stood at 1,37,873 units in July this year as compared to 1,31,257 units in the same month of 2013.
"The negative sentiments have gone. People are coming back to showrooms. As the economy revives we are going to see higher growth in the coming months," SIAM Director General Vishnu Mathur told reporters here. He added: "With a lot of new models lined up for launches ahead of the festive season, we are hoping that there will be at least single digit growth this year."
While he declined to give an exact forecast for car sales growth, Mathur said: "In the first quarter of this fiscal we have grown by 2.89 per cent. If the trend continues we hope that we could end the year with a growth of anything between 5 and 10 per cent." Giving credit to the new government, he said: "The very fact that there is a stable government at Centre has improved consumer sentiment. Besides, the reduced excise duty rates on cars have been extended and also income tax rate has also been reduced to an extent which has put more money in the pockets of consumers. All these have helped revive demand to an extent."
Read complete story at Economic Times.