News and Events

The Centre for Monitoring Indian Economy has lowered its automobile production forecast by a percentage point to 9.6% for this fiscal on account of a persistent higher interest rate regime, hike in taxes and the resultant increase in vehicle prices. The city based economic think tank said in its monthly report that "Automobile production is expected to grow by a moderate 9.6% this fiscal. This is lower than our earlier forecast of 10.6%.” The report said that the rise in vehicle prices owing to the excise duty hike coupled with high interest rate and fuel prices have increased the over all cost of a vehicle. This, coupled with concerns over slowdown in the domestic economy, is deterring consumers from making new purchases. CMIE said that "Taking these factors into account, we have revised downward our production forecast across all the major segments of the automobile industry.” According to the report, commercial vehicles production, which clocked a healthy 19.8% growth last fiscal, is expected to come down to 8.5% in 2012-13. While the light commercial vehicles segment is expected to do well, the medium and heavy commercial vehicle production may see a meager 2.4% growth amid rise in truck rentals and higher ownership costs. On the passenger’s vehicle side, the report forecast upswing in production from the onset of the festival season, adding that the first half is expected to witness a slow growth. The report said that "Production of passenger cars and vans is likely to rise 9.7% this fiscal. However, production of multi utility vehicles is expected to grow faster at 19.7% aided by capacity addition and new model launches.”