The next financial year is expected to bring high volume of sales, Society of Indian Automobile Manufacturers (SIAM), an industry body, envisaged on 10th January 2012. The prediction has allowed car makers to look ahead in a positive way and overcome the slowdown that has been persisting in the market for a long time now. The growth rate worsened in the recent past due to untamed borrowing costs and fluctuating fuel prices.
According to SIAM, the car sales is likely to boost up by 11 to 13 per cent during 2012-13 time period that indicates significant improvement over the 0 to 2 per cent rise that is predicted for this fiscal year.
"The current quarter and the next fiscal year should be better," SIAM Senior Director, Sugato Sen said. Sen stated that the upcoming policy measures to be adopted by India's central bank would uplift the economy as a whole and spark the demand of vehicles in the country.
India that ranks among the most rapidly growing auto markets in the world at present, witnessed a sales downfall of 24 percent in October 2011 as compared to the same period in 2010. The sharp dip proved to be the worst scenario in more than 10 years of the auto sector.
However, starting November 2011, car sales managed to go against the tides, with small steps, though to some extent and moreover, could not aid the companies much as weak sentiments gripped buyers like never before.
"We expect to see a softening of interest rates in coming months, which would boost consumer spending and demand for cars," he said.
Thus, car companies would be all-set to count on the favourable period in the most productive way and negate the current outcomes that have hindered the growth path noticeably.
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