Latest Car News in India

Wednesday, October 10, 2012

By Shilpa Chopra

Car sales growth to be just 1 to 3 percent for this fiscal: SIAM

Amidst the continuously slowing down demand for cars in the Indian auto market, the industry body SIAM (Society of Indian Automobile Manufacturers) has decreased their growth forecast one again. In a statement released on Wednesday SIAM said that Indian automobile industry is likely to miss the target of earning an annual turnover of $145 billion by 2016, under their Automotive Mission Plan 2006-16. This is the second time when growth projection has been lowered by SIAM, from their first projection of 10-12 per cent for 2012-13 in the month of April’12.

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The industry body has lowered the growth forecast to 1 to 3 percent from the previously set target of 9-11 per cent, which was announced in the month of July’12. According to SIAM, there are no signs of significant improvement in the growth rate of Indian automobile industry in coming 3 to 4 years. Thus, the aim of achieving yearly turnover of $145 billion by 2016 is likely to fall short by 20 to 25 percent.

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Speaking to the reporters in the National Capital on Wednesday, SIAM president S Sandilya said that considering the slow growth in the current financial year’s second quarter the industry body feels that car sales will grow at a rate of 1 to 3 percent. The total passenger vehicle sales grew by just 4 per cent at 6,18,000 units in the second quarter of this financial year as compared to 5,93,000 units sold in the same period last year. With this forecast, the car sales are likely to be the lowest since year 2008-09 when growth rate was quite moderate at 0.18 per cent. Moreover, the industry body is not expecting heavy sales in the upcoming Diwali festive season.

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