The Indian automobile industry that has been struggling with a slowdown in sales since last few months is not expected to get any relief in the upcoming festive season. The industry analysts forecast the slowdown to get deeper in the coming months. The major contributors to this slowdown include high fuel prices and continuously rising borrowing rates.
Moreover, the speculations of another hike in the auto loan interest rates next month have further added gloom to the already slowing down market. The automobile industry in the country that had registered a massive growth of 30 percent last fiscal is expected to witness a single digit growth in the current financial year.
Since March 2010, the policy rates have already been raised as many as 11 times by the RBI and it probably prepares for yet another hike at the mid-quarterly policy review on September 16. Earlier, the upcoming festive season was expected to come with some respite for the automakers in the country, but with another price hike round the corner, the situation does not seem to be getting any better by this year end.
A number of cars are slated to be launched in the upcoming festive season including compact hatchback Honda Brio, entry level sedan Toyota Etios Diesel, luxury Sports Utility Vehicle Renault Koleos etc. The car makers hope to revive sales with the launch of these new cars in the upcoming Diwali season, which is most preferable time to buy a new vehicle in the Indian auto market.
