The four wheeler automobiles, including cars / Sports Utility Vehicles / Light Commercial Vehicles / Heavy Commercial Vehicles , have shown a healthy growth rate for eighth month in a row, thanks to low base effect coupled with a revival in demand.
Same is the case with two wheeler automobiles, which has recorded the highest ever monthly sales in February 2010.
But the picture could change altogether in the coming months due to various factors :
- The excise duty has been raised by the Government with immediate effect, which could dent the demand in future.
- Most of the people had anticipated the excise hike, and hence major advancement of purchases has happened in February 2010. This would be absent in the future.
- Year ago, the March 2009 figures started to look up dramatically on a sequential basis, and hence the base effect benefit will not be available henceforth.
- Input costs are going up, and companies have jacked up prices by 2% to 5% already, which also would dampen the future demand.
- Exports to Europe could be badly hit in the coming months due to the Greece and Spain crisis.
So experts say that the next few months could see some downside for the Indian Automobile industry as a whole.
Any major sovereign crisis in part of Europe would only accentuate the problem for the Indian Automobile Industry.
India Auto sales in February 2010 at record high…Future looks shaky
March - 2 - 2010 - Tuesday
