Tuesday, January 27, 2015
By Kriti Gupta
Indian auto industry optimistic about financial year 2015-2016
After being in the slow lane for three long years, the Indian auto industry is looking at better sales numbers, encouraged by a positive forecast for the upcoming fiscal.The latest forecast of the automobile industry -- drawn from all stakeholders and institutional players -- shows all the segments posting growth in FY16, aided largely by falling fuel prices, softening interest rates as well as economy that's trying to shrug off its inertia. The recent cut in interest rate, oil pricing coupled with waning cost of ownership are currently supporting the overall momentum. For 2015, we expect the light vehicle -- passenger cars and light trucks -- production to grow at 6%, while medium and heavy commercial vehicles are likely to bounce back at 12% this year," said Amit Kaushik - principal analyst at IHS Automotive, one of the world's largest forecasting agency. "Post budgetary reforms will further support the overall momentum for the industry in the times ahead."
Critical segments like passenger cars and commercial vehicles (trucks and buses), often considered the barometer of economic activity and purchasing prowess, are likely to post healthy growth from April onward. Automobile industry stakeholders also point to the recovery posted in the past few months, with the momentum spilling into the new fiscal. "The industry benefitted from the 4-6% excise reduction in 2014. Rationalisation of taxes and incentives to increase disposable incomes would help stimulate demand in the new fiscal and carry the growth momentum further," said Hyundai Motor India senior vice president (marketing & sales) Rakesh Srivastava.
"We are targeting a double digit growth in the new fiscal and are expecting some positive measures in the upcoming budget to drive sales in the domestic market." The forecast data is provided to the industry by the apex body of the Indian auto industry, the Society of Indian Automobile Manufacturers' (SIAM), and is for internal consumption of its members.
Read complete story at Economic Times