Auto Industry Fears Fall In Sales

By Agencies

Published: Tuesday, February 22, 2011, 9:42 [IST]

Industry analysts of the automobile, feel and fear that there might be a fall in the auto growth during this calendar year. The reasons cited are to the hike in the interest rates, input rise costs and fuel costs and the projected fall may be around 14-15% in this year against 31% witnessed during the last year. However, the growth during the period of recession was by 23-24%, said VP of General Motors, which received the growth to just 6% in last month with the sale of 9984 units against 9421 units of the same period of 2010. He said that General Motors expected to repeat the same volume for this month too and said there has been too much of liquidation in the auto market due to slowdown in global economy and inflation.

He also cautioned that these factors are prone to affect the prospects of the auto industry by forcing the companies to hike the prices. The fuel price too increased with the 0 per barrel which affected the customers largely and is still on rising tone. The same sort of views were echoed by Maruti which feared the fall in its sale, said its CGM for Marketing. He could not project the overall fall in the auto industry.

Article Published On: Tuesday, February 22, 2011, 9:42 [IST]

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