India car sales likely to get back on track in 2012

A report from the research firm Deloitte says that there is going to be a situation reversal where car sales are concerned. The year 2011 has been particularly bad even after recording a whopping 25% growth in the beginning of the year. However, the situation still doesn’t seem to be very positive where only 2-3% growth is expected by the end of this fiscal 2011-2012. But what seems to be quite hopeful is soon after that, the inflation and the poor economic growth will get under control to lift the spirits of the car manufacturers. Anyhow, the future seems to be very bright especially for India where the overall cars in India are far less than the other markets in comparison.

The consumers without a car by far outwieighs the public with one already and this is what the global and local car manufacturers hope to capitalize on. Indian car market is their key for growth for many global car manufacturers and this is why India stands to be the second fastest emerging car markets across the world. More than anybody, the OEMs like Toyota and GM among many others for that matter are fighting hard to join in the league of Maruti Suzuki, Hyundai India, Tata Motors and Mahindra and Mahindra who hold 80% market share in India put together. On the top of that, the new car launches at the 2012 Auto Expo are believed to be almost doubled from the past which is bound to woo the customers no matter how grim the conditions are.

The year 2012 seems to be more promising than ever before especially for the global car manufacturers as the high inflation is bound to settle down some time or the other in future. And 2011 has been one of the worst years in the recent past to see as much as 35% increase in the petrol price itself since it was decontrolled. However, going forward, RBI hopes the inflation to steady down to 7% by 2012 and this prediction comes after extreme cruelty from the bank with 13 revisions on lending rates just to get the inflation under control.

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