The sale of vehicles for 2010-11 is projected on vertical axis, though orthogonal growth rate is not also ruled out. The industry sources foresee the growth amidst speculations over hike in costs and depriving stimulus features. The nine months of the 2009-10 fiscal saw the growth rate of 22% of which the cars constitute 24% compared to the previous recession phase.
According to the President of SIAM, the sale may dip if the customers are testified on price rise. The transaction price, which includes sticker price, taxes and interest rates for the auto loans, is the major factor for the sale. The government was good enough to waive gate taxes in 2008 and 2009 which boosted the net sale in spite of downfall in the economy. Another factor was the easy loan facility courtesy the apex bank.
Among the major car makers, Maruti is yet to come out with the rise while Toyota and GM have announced their rise by 1.5-5% effective January. The outcome of the price rise in commodity would invite equal hike from Hero Honda Motors. The rise, however, may not burn the pockets nor melt the bank balance of the customers. M&M is facing a fall in its monthly production by 5% for the sake of supply hiccups. The manufactures face this sort of freak issues, which may revive in April, said the secretary. The suppliers didn’t expect such early revamp of sale in auto industry.
In December 2009, the sale of car found an increase by 40.3%-115268 cars against 82714 in the previous year thanks to the confidence reposed by the buyers, slow down in the previous year and ready finance from bankers. Trucks and buses constituted the sale figures of 17.1%- 48614 units against 17897 units in the previous year. The higher base effect may affect the sale during Jan-Mar, he said. The government’s relief measures worked out well for the affected industry and yielded marginal sale since Jan 2009.