Thursday, September 24, 2009

A Peek Into The Indian Automobile Industry

Here is a write up on the Automobile sector of India, lets just do away with any history & the entry of the Amby & Maruti & jump to the current scenario. Its not my speculation, but from what the papers rattle, the Indian Automobile Industry is slated to grow at 9- 10% in near future(don't ask me when it is). The 2 wheeler segment sales grew by 12.8% with modest 2.6% growth rate, under this segment the market leader Hero Honda has had growth of 12% in domestic sales while Bajaj Auto was a loser with sales plunging by 23%(!!).

Car sales on the other hand have grown by 22.7%(healthy!) in last Feb but commercial vehicles reported slower sales. Its is said that for the festive season round the corner, car-makers are going to producing 70,000units/month more over the average of 1.3lac/month with the help of 5000new hands(Source- ET). These news make me think whether we are already in the post recession era coz if that is the case, none would be happier than me as it would spell a better placement season for me(us in fact). But then, when have industrialists been truthful as most of this news can also be floated to keep up the market spirits; well not a bad cause at all, yet......In the past few days, almost on a daily basis I have been confronted by auto news wherein we have Ford, Nissan, Toyota, all coming up with their own bandwagon of small cars to gain a pie of the Indian auto market share.The boom in market demand is reflected in the August sales of Maruti which is 84,808 vis-a`-vis 59, 908 last yr in 2008. In fact the total car sales upped by 30.5% in Aug 2009 while Maruti's exports alone grew to 156.2% against last year's growth figures. However, the largest automobile company, TATA Motors had a 10.7% decline in revenue despite it being christened variously as the 4Th largest truck manufacture, world's 2ND largest bus manufacturer .........................to be contd.

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