News and Events

Business Line reported that the cutting car sales projection for the ongoing fiscal for the second time due to demand slump, the auto industry will miss its target of clocking an annual turnover of USD 145 billion by 2016 under the Automotive Mission Plan.

 

 The Society of Indian Automobile Manufacturers lowered car sales growth projection to just 1% to 3% for this fiscal from the 9% to 11%t announced in July.

 

 Automotive mission plan target

 With no signs of a significant growth in the next 3 to 4 years, SIAM said that the AMP target of annual turnover of USD 145 billion by 2016 will be missed by around 20% to 25% at the current rate of growth of the industry.

 

 Mr S Sandilya president of SIAM said that “Considering the low growth that we have seen in the Q2 of this fiscal and the overall macro economic situation, we feel the car sales will grow around 1% to 3% this fiscal. If the car sales grow at this rate, then it will be the slowest since 2008-09, when it grew just 0.18%.”

 

 In the H2 of this fiscal, passenger vehicle sales including cars grew just 4% to 618,000 units against 593,000 units in the year ago period.

 

 Auto industry sales

 He said that the overall economic situation of the country, low sentiments, high petrol prices and interest rates are among the factors hurting the overall sales of the auto industry.

 

 He added that “Even we don’t expect to have a good festive season this time around.”

 

 He said that overall, the auto industry’s sales will grow 5% to 7% much lower than the earlier estimate of 11-13 per cent for this fiscal. If this current trend continues, then we will miss the AMP target of achieving an annual turnover of USD 145 billion from auto and auto component manufacturers by 2016.