Passenger vehicle manufacturers are hopeful of achieving a double digit sales growth for the current financial year. Earlier, the sales outlook for cars and utility vehicles was pegged at 5% to 6% for 2009-10 by the Society of Indian Automobile Manufacturers.
One reason for the upward revision in the forecast comes from the surprise growth of 9.45% notched by the industry since the beginning of this year.
Mr Pawan Goenka president of Siam and president of Mahindra & Mahindra said that “The surge in growth for this year comes primarily from the low base posted by the industry last year. For the whole industry, I expect growth to be in the high single digits.”
Analysts said that the expected growth of around 10% for this year comes from five reasons. A Mumbai based analyst said that “The industry will continue to grow on the back of new models, which is expected to come from TATA Motors (new Indigo), GM (the Beat concept compact car) and Ford’s new small car next year. Maruti’s new models like the A-Star and Ritz have generated good sales volumes. Two, the three stimulus packages announced by the government beginning last December have pulled consumers to showrooms. Three, the attractive car loans at 8% offered by public sector banks like SBI and four, the growth in rural markets.”
Last year, the industry grew by 0.13%.
(Sourced from http://www.steelguru.com/news/index/2009/09/09/MTEwODUy/Rays_of_recovery_-_Indian_car_makers_increase_targets.html)
Tuesday, September 8, 2009
Rays of recovery - Indian car makers increase targets
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