The Society of Indian Automobile Manufacturers has downgraded the auto sales growth outlook for 2011-12 to 11-13 per cent on the back of a moderation in growth seen in the first quarter of the fiscal.
Sales in the first three months of the fiscal have been impacted by a negative consumer sentiment on rising interest rates, higher fuel prices and an increase in vehicle prices.
In the beginning of the fiscal, the industry body had forecasted a 12-15 per cent auto sales growth for the fiscal after a strong 2010-11, when sales grew 26 per cent. Car sales outlook for the current fiscal has also been lowered to 10-12 per cent from 16-18 per cent.
According to a SIAM report, in actual terms, auto sales between April and June have grown at 15 per cent. Passenger vehicles sales, comprising cars, utility and multi-purpose vehicle, have risen 9 per cent. Meanwhile, commercial vehicles sales in the first three months of 2011-12 were up 14 per cent and two wheelers 17 per cent.
“(Going forward) we need to watch interest rates, fuel prices and commodity prices carefully. With current outlook, the industry is still expecting a healthy double-digit growth,” the report said.
Global comparison
SIAM added that in comparison to global passenger vehicle sales growth during January-May 2011, India was on top of the list with an 18 per cent growth. It was followed by the US and Germany. However, in terms of commercial vehicles sales growth during the same period, it ranked fifth (13 per cent) after Germany, UK, Brazil and the US.