Until recently, India's market had been racing ahead, posting double-digit growth, spurred by a fast-growing economy that had created a new, affluent group, Butt high borrowing costs and new tough loan conditions as a result of the global credit crunch has hit the economy growth, with the latest sector to face the brunt is the auto industry.
India's domestic car sales fell by 6.6% in October, the fastest drop in more than three years, as consumer loans dried up amid a global credit crunch, even as a festive season failed to revive the auto industry. according to the Society of Indian Automobile Manufacturers (SIAM). Cumulative vehicle sales growth for the seven months to October stood at 5.64% from 10.07% growth in the April-September period. Earlier this year, SIAM had forecast overall vehicle sales growth of 12-15% for the financial year to March 2009.
Close introspection of the figures released show that, car sales in the domestic market plunged in October with a 6.59% fall to 98,900 cars against 1.05 lakh in the same month last year. Motorcycles sales were down 18.17% to 5.38 lakh against 6.57 lakh last year. Similarly, trucks and buses sales fell 50% to 11,786 vehicles from 23,352 during the same period. Scooters and passenger three-wheelers were the only two segments that posted positive growth of 4.4% and 16%, respectively. Exports also grew 41.16% to 1.44 lakh in October against 1.02 lakh the same month last year.
SIAM will review its sales forecast for the year ending March 31 after the November figures are announced next month. SIAM has already cut its full-year growth forecast to between 8-10% from an earlier estimate of 12-13%.
Automotive Industry in India - India's automotive industry, produces 1.5 mn vehicles annually, and is worth $34 bn a year, contributing 5% of the country's GDP.
India's domestic car sales fell by 6.6% in October, the fastest drop in more than three years, as consumer loans dried up amid a global credit crunch, even as a festive season failed to revive the auto industry. according to the Society of Indian Automobile Manufacturers (SIAM). Cumulative vehicle sales growth for the seven months to October stood at 5.64% from 10.07% growth in the April-September period. Earlier this year, SIAM had forecast overall vehicle sales growth of 12-15% for the financial year to March 2009.
Close introspection of the figures released show that, car sales in the domestic market plunged in October with a 6.59% fall to 98,900 cars against 1.05 lakh in the same month last year. Motorcycles sales were down 18.17% to 5.38 lakh against 6.57 lakh last year. Similarly, trucks and buses sales fell 50% to 11,786 vehicles from 23,352 during the same period. Scooters and passenger three-wheelers were the only two segments that posted positive growth of 4.4% and 16%, respectively. Exports also grew 41.16% to 1.44 lakh in October against 1.02 lakh the same month last year.
SIAM will review its sales forecast for the year ending March 31 after the November figures are announced next month. SIAM has already cut its full-year growth forecast to between 8-10% from an earlier estimate of 12-13%.
Automotive Industry in India - India's automotive industry, produces 1.5 mn vehicles annually, and is worth $34 bn a year, contributing 5% of the country's GDP.
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