According to Siam report, car sales closed the 2013-14 year at 17.86 lakh units, a decline of 5% over 18.74 lakh units sold in the previous year.
According to fiscal 2013-14 numbers released by industry body Society of Indian Automobile Manufacturers (Siam), car sales closed the year at 17.86 lakh units, a decline of 5% over 18.74 lakh units sold in the previous year. Industry sales were down despite the addition of new models. Sales had fallen 7% in 2012-13 which was the first fall for the Indian car industry in nearly a decade.
"Last year was one of the most difficult years for the industry. The business environment was tough due to low growth of economy, high interest rates, fuel prices and low sentiments," Siam president Vikram Kirloskar said. Employment, mainly of contractual and temporary workers, had been impacted due to the slowdown. "We at Siam have not done a calculation of how much job losses happened, but I personally feel that across the entire value chain in the auto industry — from raw materials to dealerships — there could be around 1-1.5 lakh job losses."
Analysts feel that it will be sometime before a credible recovery comes in. "A lot depends on the outcome of upcoming elections, economic stability and policy initiatives of the incoming government to drive the industry growth. While the long-term potential for the Indian automotive market remains positive, the significant challenges witnessed in the last few years have resulted in auto industry stakeholders re-working their India strategy as they increase their focus on vehicle exports, rural penetration, deep localization and dealer profitability," said Rakesh Batra, Partner for Automotive practice at EY.The impact of the negative sentiment was such that SUVs and utility vehicles, a category that shot up by 52% in 2012-23, also found itself in a tough spot. Sales in the category fell 5% last fiscal.
Recent cuts in excise duty, announced in the vote-on-account in February, also failed to work much wonders for the industry. Siam said a further impetus is required. "Whichever government comes in... I am looking for stability in excise duty and some reduction in taxes," Kirloskar said. "We are an over-taxed industry."
Companies like Tata Motors, General Motors, Toyota and Volkswagen saw volumes finish the year in deep red even as biggies like Maruti Suzuki and Hyundai managed to maintain numbers nearly at previous year's level.
Only companies with new models managed to register healthy growth and these included Honda and Ford. Honda saw an 82% growth in volumes on the back of new models like the Amaze entry sedan and next-generation City while Ford grew nearly 10% on the success of its Eco Sport SUV.
via Business - Google News http://ift.tt/1i8uWYo
Put the internet to work for you.
0 comments:
Post a Comment