The society of Indian automobile manufactures (Siam) on Tuesday released its production, sales and export report. While the passenger vehicles and two and three-wheelers segment registered a positive growth, the commercial vehicle segment seems to be lagging behind.It’s been a better-than-expected performance by India's automobile industry in the first half of the fiscal year.
Passenger vehicle sales have jumped 13.5 per cent, while two- wheelers grew at more than 15.5 per cent.
But commercial vehicle sales are down and this is the real worry area for Motown.
Dilip Chenoy, president of Siam, said, “Growth in the CV segment reflects the economic condition. When there is a downturn, the first to fall are the CVs and in the upturn the last to grow are the CVs. What we are seeing now is slow and steady growth, which reflects that the Indian economy is improving.
But to come back to its full growth potential will take some time because the last year’s numbers are very low. We might see numerical growth in November-December and hopefully by the end of the financial year, we will see some positive growth."
It is the return of financing to the auto space that is starting to help the CV makers too.
The problem though is of large inventory that remains to be cleared from the pipeline.
However, for the rest of the industry the availability of loans and the massive festive demand is surely pushing them towards achieving double-digit growth for the full year.
Passenger vehicle sales have jumped 13.5 per cent, while two- wheelers grew at more than 15.5 per cent.
But commercial vehicle sales are down and this is the real worry area for Motown.
Dilip Chenoy, president of Siam, said, “Growth in the CV segment reflects the economic condition. When there is a downturn, the first to fall are the CVs and in the upturn the last to grow are the CVs. What we are seeing now is slow and steady growth, which reflects that the Indian economy is improving.
But to come back to its full growth potential will take some time because the last year’s numbers are very low. We might see numerical growth in November-December and hopefully by the end of the financial year, we will see some positive growth."
It is the return of financing to the auto space that is starting to help the CV makers too.
The problem though is of large inventory that remains to be cleared from the pipeline.
However, for the rest of the industry the availability of loans and the massive festive demand is surely pushing them towards achieving double-digit growth for the full year.
0 comments:
Post a Comment