Indian car sales might slope downwards
Indian car sales after showing a good 25% increase in the last financial year ending this March, are unlikely to maintain the crest this year. Various risks like the increased base prices and high input costs are worrying and rendering anticipations by various Automobile gurus that the year 2010-11 might see restrained car sale volumes.
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With few concerns there are still no panic waves in the sector as experts like SIAM chairman Pawan Goenka said that the Industry is showing positive signs and the car sales in India would continue to grow in double digits. Maruti Suzuki marketing & sales executive officer Mayank Pareek commented that the high sales in last year was somewhere a culminating effect of low demand in the previous fiscal and that the growth is comparable to a 10-12% increase in annual sales over the last five years.
The year had already started with a 4% increase in prices that was further raised by 2-4% due to the new emission norms. Lower base prices last year were attributed to factors such as new launches, moderate input costs and benign taxes that allowed and gave space to automakers to work on cutting prices.
With all the speculated risks and forecasted spills, the foray of launches by major automobile majors such as Volkswagen, Ford, Tata Motors, General Motors is definitely throwing glimpses of hopes to the automobile market.
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