New Delhi: Higher interest rates, inflationary pressures, fuel price hikes, and an inauspicious period in the month had an impact on retail demand for cars this September.
Crisil research say the slowdown in the Indian auto sector will extend to 2009/10 with the industry logging a single-digit growth rate. Market leader Maruti seems to be the least affected by the turmoil.
Domestic sales are slightly better than expectations, Maruti is betting big on the A-Star which will be launched in domestic markets by mid-November. Exports were up in September - but with the global slowdown the road ahead could be bumpy.
“Recession has spread all over the world, and India is not an exception. Forecast results show that we are 10 per cent down,” says MD, Maruti Suzuki India, Shinzo Nakanishi.
M&M's UV sales have been strong in September logging a 31 percent growth year on year driven by the non Scorpio segment. Scorpio sales are down 13 percent year on year. Tractor sales are down 7 percent year on year.
"It may postpone a certain section of a plan, so far there are no indications that we are going slow," says Keshub Mahindra, Chairman, Mahindra & Mahindra.
Tata Motors has been hit the hardest. Passenger car volumes declined 3.2 percent in Sep '08 with Indica sales down by 24 per cent.
UV sales were flat in Sep, medium and heavy commercial vehicles are down 10 per cent. In fact, the company has postponed a part of its 12,000 crore rupee capex plan because of the slowdown.
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