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      Economic Scenario Affect Affects Car Industry In India

      Satish

      Satish

      Car makers in India are finding it tough to keep up the growth figures. Rising fuel prices and increase in inflation has seriously affected the sales figures as they deter new car buyers from the auto market. Auto makers are expecting that double digit growth figures may be tough to achieve as well.

      "In my view, there is no way the auto industry could repeat the past growth level during this year, against the backdrop of rising inflation which has crossed the 10 per cent mark," Ford India Executive Director Nigel E Wark. Car industry had witnessed around 15 to 18 percent growth in past 5 years which seems a little difficult to attain this year, say Wark.

      India is expected to achieve the mass motorisation status by 2014. However, the rising inflation in the country and deteriorating economic scenario is making it tough for the automobile manufacturers in India to sustain a healthy growth.

      Last year, the favourable market conditions have lent a boom in the car industry in India. This year the tables have turned considerably which may make the auto makers to revise at least their shot term plans.

      Ford plans to launch new models to its portfolio in India, however, it has no plans to bring any hybrid models in the country.