Although the overall Budget this year didn’t pay according to the anticipation of the automobile industry in India, the auto market prospect in India this fiscal is looking up. According to SIAM (society of Indian automobile manufacturers) the present financial year will show a good volume of growth as the sales charts of March 2012 showed a rise of 19.66 percent in total. This way a prediction has been made that this financial year will bring in more blessing for the auto manufacturers as the sales would go up by 10 per cent to 12 per cent. Another reason for this expected growth is the deductions in the interest rates, so this will enable more buyers to come forward and make a purchase.
With a fifth sales increase in a row, the month of March has also registered an overall decline in the annual sales of vehicle by 2.19 percent till the last date. With the increased rate of interest and a continuous hike in the price of petrol fuel, the previous year saw a very slow pace in automobile sales in the domestic market. With a recorded volume of 2.02 million vehicles sold in the year 2011-2012, the market saw a decline in sales.
One of the senior executives of SIAM was of the opinion that indeed previous year’s sales were on the declining side, but this year will definitely make up for that loss as well as earn the industry some major profit. The lowering of interest rates by the central bank is also going to boost this year’s sales. However, the volume of car owners is very low in India, which also gives a huge scope in terms of production and sales for the automobile industry.
Right now 12 out of every 1,000 Indian own a vehicle as per the research and specifications of the survey agencies. This number is very meager compared to the statistics of United States where for every 1,000 citizen; more than 500 own a car. This is one of the few reasons why all the global companies from foreign nations are coming in to India and investing rapidly. Their intention is to reap fruits for a very long time from the Indian automobile market.