20017
Is The Auto Industry Slowing Down?
Posted on 
In the first three quarters of Financial Year 2012 the auto industry has witnessed a slowdown in terms of the overall growth rate, however the outlook for FY 2013 looks positive and has the potential to swing the industry back into gear
Even the moped industry did marginally better than motorcycles and posted a 1.80 per cent growth! The main cause of the slowdown amongst two wheeler buyers can be attributed to the steep rise in ownership cost thanks to the severe hikes in petrol pricing. Never the less, the outlook for 2013 is better as the market is showing signs of stabilizing and there are a slew of new launches planned which should provide the impetus to boost growth across all two wheeler segments.
There is no doubting the fact that the outlook of the industry, based on the performance in FY2012 so far has shown signs for everyone to sit up and be rather concerned, however it is important to understand that a lot of this turmoil is the result of numerous factors including stalled investments due to governance issues, lackluster interest amongst businesses which has been further fueled by the depreciation of the Rupee against the Dollar. Secondly, the Government has been slow to react and the decisions haven’t truly been in line with what the industry required to boost growth. While governance remains a concern, the good news however is that the industry isn’t just sitting idle.
Opportunity exists, even in dire times, and that seems to be the mantra right now. Across the two and four wheeler segments we can expect to see over 70 product launches and this number might go higher if we include the introduction of new variants as well. Secondly, the debate on fuel prices seems to be attended to at the moment and finally, despite the domestic scenario, India is expected to post an economic growth between 5-6 per cent in 2012-13. It’s lower than before but looking at the global market, which is expected to report only a 3-3.3 per cent growth for the same period, India still stands on a reasonably strong economy which just needs the right impetus for major industries like the auto sector to prosper.
A lot depends on immediate governance decisions, however from an industry perspective, there is no better way than kick-starting the sales charts than by offering new launches. It is a bit of a long shot, however should the market gather momentum through these new launches, 2013 just might end on a positive note despite what the trade pundits state.
Do you like this story?
- Previous Story
- Next Story
Readers' opinions ( 4 )
Post a Comment
Post a Comment-
varghese
Of course ! People are going in for 2-wheelers.Nanos demand will pick up.
-
Jayeshkumar
Do you ever worry about Pollution and Global Warming?, Fuel consumption and subsidies?, Budget and Trade Deficit?. ...or Ideas and Innovations!
-
Naqli Jayeshkumar
Lol. true that
-
aslijayeshkumar
go to greenpeace website to complain for that...i think thise site is abt cars and bikes for us enthusiasts!
Five reasons why auto world is shifting to emerging markets
by ET Bureau
The dichotomy at times is hard to fathom. The...
Toyota Kirloskar Motor inks MoU with M&M Financial Services
by Rahul Basu
Mahindra & Mahindra Financial Services will be...
New Maserati Ghibli revealed before Shanghai Auto Show
Maserati has revived the Ghibli name, albeit in...
Chevrolet cars to cost more from June 2013
General Motors India will hike prices across its model range by up to 1.5 per cent in the first...
BMW appoints 46 dealers to sell i3 and i8 electric cars
BMW is gearing up to launch its first fully electric car, the i3, in late 2013 and has appointed 46...
The Ferrari Way : Special Coverage
Ferrari has been voted as the most powerful brand in the world according to Brand Finance and the...
Chevrolet Enjoy : Special Coverage
Designed to take on everything from the Maruti Suzuki Ertiga to the Toyota Innova the Enjoy is...
