The Society of Indian Automobile Manufacturers (SIAM) is not anticipating any negative growth in sales in the Indian auto market following the high sales recorded within the first two and a half months this year. Prior to the 2012-13 Union Budget release, the automotive sector sought high bookings due to the fear among buyers of rising excise duty and diesel fuel prices.
Mr. Vishnu Mathur, Director-General, SIAM, commented on the 2012 sales pick up saying, "As of February, car sales growth in the domestic market for the fiscal is at 0.31 per cent. It is likely that we may end the year between 0-1 per cent growth."
The sales data recently revealed by SIAM shows that sales figures was recorded at 1786249 cars during the April – February period as compared to the 1780740 cars sold during that corresponding period a year before.
It is being expected that the high sales registered in these initial months of 2012 will decline due to the hike in excise duties. However, the unchanged taxes on diesel vehicles will prohibit further rise in prices of vehicles.
Mr. Mathur further said while commenting on the sales pre-budget and sales expected post-budget release, "So in March, the first half and the second half may cancel out each other with a net flat sales growth."
The April-January period witnessed the sales of domestic passenger cars decline by 1.19 per cent from 1593850 units to around 1574847 units during the same period a year ago.
The swelling demand for diesel cars in India and the no hike in taxes on diesel powered cars will certainly assist in maintaining the sales equilibrium in the Indian auto sector.
