Ad Here  
TCS, Indiaís biggest block buster Trends point to a hung assembly Plans to double trade with Latin America Airlines hit by service tax on lease Renault revving up small car launch Latin America beckons India for investments Automobile sector in slump... ONGC to draw down on reserves to meet CAPEX needs GMR to raise US $ 250 mn thru QIP Canada screams over IT outsourcing to India TVS bullish on the two wheeler market? Excise duty may halt the war in SUV market Flipkart India in the red by Rs 280 crore Wal-Mart studying FDI norms post split with Bharti Lanco to sell Australian acquisition Singapore Airlines prefers Airbus Aircraft lessors to get protection from defaulting airlines German envoy Steiner caps a language row LANCO opens negotiations with buyers for Karnataka power plant Hyundai Grand i10 awaiting launch Capital Notes Smartphone prices may change Fox Star Studios to tie-up with Bolly-wood and Kollywood Infosys not to cut prices Kolkata kisses goodbye to Ambi? While MoTown is on a tailspin, the telecom sector is staging a rally Urja Sangam in Delhi Vodafone slapped with tax notice of Rs 3700 crore Hunt for new finance secretary on... How important is Modiís German visit... Vodafone to buy out minority shareholders SpiceJet in the news again Carlyle invests in Trehanís Medanta Medical Centre Jet-Etihad Rs 2000 plus crore deal to be cleared
Automobile sector in slump...
Passenger vehicle sales in the first three quarters of this fiscal year declined by nearly 6 per cent to 1.83 million units. -Vishnu Mathur

India’s automobile industry, which is in a slump, may have to wait till the second half of the fiscal to bounce back. The industry will end the current fiscal with a ten year low in sales turnover.

“Generally negative feelings seem to have kicked off the downturn in the industry following the slackness in the economy, and we expect growth to return only in the 2nd half of the next fiscal,” said Vishnu Mathur, Director General of SIAM. GDP growth rate is below the 5 per cent mark this fiscal, the lowest in a decade. The downturn in the economy has been

characterised by high inflation, high borrowing costs and rising fuel prices. With fuel cost being the main reason behind postponement in buying a vehicle, passenger vehicle sales in the first three quarters of this fiscal declined by nearly 6 per cent to 1.83 million units as compared to the earlier period.  In December last year, vehicle sales fell by 9 per cent even as overall automobile sales including scooters and motor cycles dropped 1.21 per cent to 1.43 million units.

Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236