It was pointed out by SIAM (Society of Indian Automobile Manufacturers) in January 2012 that car sales for this fiscal might end up in negative. Fortunately, March sales were impressive and highest for many manufacturers which enabled a paltry growth of 2.19 percent for the year 2011-12.
This growth of 2.19 percent is the slowest for the past two years and by a big margin.
- 2008-09 : 1.4 percent
- 2009-10 : 25 percent
- 2010-11 : 29 percent
- 2011-12 : 2 percent
For the 2008-09, it was recession which caused the flutter but the following couple of years were fantastic with greater than 25 percent growth rates registered. The major reasons for this years lacklustorous performance were the increasing fuel prices, higher Interest rates and inflation. Country’s largest car manufacturer, Maruti’s decline in sales due to workers strike at Manesar plant also worsened the situation.
The top 3 manufacturers:
- Maruti Suzuki : reported a decline of 11.46 percent in overall sales. It registered sales of 8,55,730 units against 9,66,447 during last fiscal.
- Hyundai : sales increased by 7.88 percent to 3,87,168 units from 3,58,904 units
- TATA Motors: reported a minimal increase of 0.9 percent by selling 2,57,966 units this fiscal compared to 2,55,704 units last year.
This year also we retained our position as the fifth largest car producing country in the world. Lets hope for the best for the next year.
Source: Economic Times