Recession reports - Indian 2 wheeler sales may dip by 10% in 2009
IANS reported that the Indian two wheeler industry is likely to witness a 10% reduction in sales volume next year given the tight market conditions and the slowdown in the economy.
Mr Venu Srinivasan CMD of TVS Motor Company Limited said that "The times ahead will be tough. Economic growth may not be seven percent. It is time for cutting costs."
While there will not be any fresh employment, Mr Srinivasan ruled out any reduction in the permanent workforce, he added that there may be some contraction in the temporary workforce. According to Mr Srinivasan, restricted availability of finance to purchase two wheelers and the general inflationary conditions are impacting the company's sales.
The cumulative sales of September and October 2008 show a growth of 4% when compared to the same period of the previous year. TVS Motor sold 117,101 units in October 2008 against 129,614 units in the corresponding period of the previous year. Last month the company exported 17,013 units as against 13,042 units in the corresponding period of the previous year.
According to industry lobby Society of Indian Automobile Manufacturers, a total of 7,248,589 two wheelers were sold in India during 2007-08.
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