SIAM: Indian automobile industry to miss all growth targets

These April-January 2013 numbers are proof that automakers are caught in a bind of a slowdown. A host of measures, including handsome discounting and a flurry of variants, have failed to get buyers to sign away their monies on new vehicles. As a result, most automakers are looking wishfully at the Union Budget, to be announced later this month,

Autocar Pro News DeskBy Autocar Pro News Desk calendar 11 Feb 2013 Views icon2679 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
SIAM: Indian automobile industry to miss all growth targets
New Delhi, February 11, 2013: Recognising that the combination of high interest rates, rising fuel prices and poor market sentiment were all contributing to dwindling purchases of vehicles, the Society of Indian Automobile Manufacturers (SIAM) had lowered its growth forecasts for all segments on January 9 this year (see ‘Changing Forecasts’ chart). Maybe it should have lowered them even further for the real-world story is reflective of the troubled time the Indian auto industry is experiencing.

SIAM has just revealed the domestic sales figures for the 10-month April 2012-January 2013 period. Overall growth was 4.66 percent over the same period last year, while in January 2013, overall sales grew only by 5.31 percent over January 2012.



The total passenger vehicles segment grew at 6.80 percent during April-January 2013 over the same period last year. While passenger cars declined by (-) 1.80 percent, Utility Vehicles grew by 56.87 percent and vans grew by 2.63 percent during April-January 2013 as compared to the same period last year. However, in January 2013 passenger car sales further declined by (-) 12.45 percent over January 2012. Total passenger vehicles sales also declined by (-) 4.62 percent in January 2013 over the same month last year.

The overall Commercial Vehicles segment registered de-growth of (-) 0.37 percent in April-January 2013 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) declined by (-) 21.37 percent, Light Commercial Vehicles grew at 15.48 percent. In January 2013, M&HCVs sales further declined by (-) 38.96 percent over January 2012.

Three-wheelers sales grew by 5.10 percent in April-January 2013. Passenger carriers grew by 9.07 percent during April-January 2013 and goods carriers registered de-growth at (-) 10.09 percent during this period.

The two-wheeler segment registered a growth of only 4.53 percent during April-January 2013. Scooters, mopeds and motorcycles grew by 17.76 percent, 2.44 percent and 1.43 percent respectively over the same period last year. However, in January 2013 scooters, motorcycles and mopeds grew by 12.24 percent, 7.45 percent and 8.26 percent, respectively.

Exports During April-January 2013, overall automobile exports registered de-growth of (-) 3.01 percent compared to the same period last year. Passenger vehicles grew by 7.79 percent, while the other segments like CVs, three-wheelers and two-wheelers fell by (-)10.51 percent, (-) 18.97 percent and (-) 2.43 percent respectively. In January 2013, passenger vehicles and CVs declined by (-) 13.53 and (-) 46.94 percent respectively. Meanwhile, the two-wheelers and three-wheelers segments grew only marginally by 1.26 percent and 1.00 percent respectively.



These April-January 2013 numbers are proof that automakers are caught in a bind of a slowdown. A host of measures, including handsome discounting and a flurry of variants, have failed to get buyers to sign away their monies on new vehicles. As a result, most automakers are looking wishfully at the Union Budget, to be announced later this month, to provide a fillip to growth. In fact, last week, on the sidelines of the first ACMA Automechanika New Delhi 2013 trade fair, Union minister of heavy industries Praful Patel said he would facilitate talks with the Indian automotive industry's parent ministry, the Ministry of Heavy Industries, to hold discussions with the Finance Ministry to offer support to the auto industry. "The auto sector, including the components industry, is going through a tough time. It's important to revive the sector. We must see how we are able to incentivise the industry. I'll certainly talk to the Finance Minister. We'll try to see what is the best way forward," said Patel.
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