Seems like the strong growth story of the Indian automobile industry is finally coming down to rational levels. A variety of factors including high input costs, rising lending rates and fuel prices which are simply rocketing through the stratosphere seem to have begun straitjacketing growth in the Indian auto sector.
The month of April saw moderate growth for most of the carmakers, especially the high volumes ones. Some carmakers even had to witness negative growth. Whatever little hope was left has been stabbed in the heart by the recent escalation of import duties on CKDs to 30% from earlier 10%. It’s quite evident that the strong growth that the Indian auto industry witnessed in the year 2010 cannot be expected to repeat itself.
Companies like Hyundai and Maruti which lead the volumes in the Indian market have reported a reduction in both footfall and conversions at their showrooms.
Japanese Auto Major Honda has registered negative growth of 44% as an aftermath of the earthquake and tsunami in Japan, and the resultant production cuts the company had to undergo. Ford India has also reported an overall decline in sales by 2.5%
Toyota, even after being a Japanese manufacturer has registered 61% growth, riding high on the success of its Etios sedan. VW group companies have also registered solid growth. VW India showed an incredible 370% growth over April 2010 while Skoda India has shown 90 percent growth.
Here’s a consolidated sales chart of all the major car manufacturers along with the growth percentage they registered over April 2010. Will soon update it more entried, stay tuned
|Carmaker||April 2010 sales||April 2011 Sales||% change|