According to the data released by Society of Indian Automobile Manufacturers (SIAM), the sales of passengers cars have declined by 4.7 per cent during April to September time period. As told by the industry body, this steep fall is the sharpest since fiscal 2003. However, the sales of passengers cars rose by a marginal 0.7 per cent in September 2013
with figures standing at 156,018 units. It must be noted that the Indian auto industry is heading towards recording a second consecutive decline in sales as rising fuel prices and high interest rates have impacted the consumer sentiments.
SIAM told that since the value of rupee against dollar has remained stable, the prospects of high interest rates still bothers buyers. Commenting on this on-going issue, Vikram Kirloskar, President of SIAM was quoted as saying, "Interest rates are still very high in the country, but the rupee movement seems to have stabilize now. We are not seeing any encouraging signs on the economy side and I'll be thrilled if the auto industry is flat or a little bit positive."
The Indian car market is going through a low phase since past nine months despite of the minor change in August, which solely rode on the back of Maruti Suzuki's good performance. The negative consumer sentiment has not only taken a toll on the vehicle manufacturers but the entire industry, which includes component manufacturers, financiers and dealers through direct or indirect means. Since the month of festivities has started, car manufacturers are hoping for a revival in their fortunes. Alto to mention, the move to launch new models in the stagnant market conditions has come full circle for some companies that include Ford, Hyundai and Honda.
In the meanwhile, the two-wheeler industry is showing a rosy picture as the sales of motorcycles grew at 17.4 per cent in September 2013 ending with figures of 8.85 lakh units. This strong showing by the two-wheeler industry is the sole silver lining in the struggling auto industry. While for commercial vehicles, the demand remained subdued with 51,680 units in September 2013, registering a downfall by 27 per cent.
