Car sales figures may remain negative this fiscal year

Indian car manufaturers may have to face tough times ahead in terms of car sales in India. Society of Indian Automobile Manufaturers [SIAM] announced a target of 12 to 18 pecentage of growth for the year 2011 and 2012. But this projected figures 12 to 18 percent growth, now looks distant to reality. Looking at the market trend SIAM revised the projected figures from time to time and annouced revised projected figure 10 to 12 growth percent by june. Recently in january, SIAM again announced its revised projected figure of 0 to 2 growth. Now it looks like this scenario might even get worse, as its getting tough even to reach 2 percent of growth rate. The growth of car sales in India is heading towards a recod low in last nine years.

 

Many reason's contributed for such a low projeected growth rate Indian auto industry. Indian auto industry suffered its first set back in april 2011, when japan was hit by tsunami, as the japnaese manufacturers stopped all the imports of the compnents from india, which showed its effects on indian production. Then this industry suffered a major jolt from indian economy, with fuel price rise, increased loan rates and inflation rate. The major set back, that affected most was when major indian car manufaturing company Maruti Suzuki labourers went on a strike for a long period. This resulted in almost zero production from this indian car manufacturing giant.

 

Their was a long waiting period for the release of Cars in India market which resulted in drop of their market share. Hitting last nail on the coffin was floods in thailand, which again affected indian components manufacturers. The effect was so adverse that, Honda could not even produce single unit of Jazz and Brio in the market. Some good news came in for car manufacturers india, with year ending sale discounts on cars, which slightly helped the industry to regain from contineous set backs. In coming two months indian car industry must attain 12 percent growth in sales to reach 2 percent growth rate for the fiscal year.