Saturday, 3 May 2014

New Year starts with Negative Note

Indian auto industry has almost completed it two and half year of negative growth. The first month of new fiscal remains downward despite lower base of April 2013. This year despite the lower sales number of April last year, the passenger vehicle is estimated to decline by 2 to 2.5 percent. The auto industry has shown mixed show expecting good performance from two wheeler and scooter segment.


Sale remains sluggish mainly due to lower market sentiment, uncertainty in increment of people’s income due to uncertain economic situation. Higher cost of the cars due to inflation etc. The economy is also facing high drama political uncertainty about the meeting industry expectation from the new government.

Major passenger car makers registered declined due to weak demand from the market while new launches helped Hyndai, Honda and Ford to remain on positive note. The estimated sale of April this year is about 1.95 Lac units while it was 2.01 Lac units in the same period last year.

While talking about two-wheeler and scooter segment, top two player remain Hero MotoCorp led by its low cost bike in the rural market, while Honda remains on the second place led by strong demand from its scooter segment.

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