Major car makers have recorded a surge in auto sales in August 2014 ahead of the festive season. Additionally, experts believe that recent decline in international rubber prices is also a factor that might boost the Indian automobile industry.
According to a report by Automotive Component Manufacturers Association (ACMA), Indian auto sector is expected to record up to six percent growth in the current fiscal year, after having recorded a loss of two percent in 2013-14, reported Business Standard.
But, Price Waterhouse auto expert and partner, Abdul Majeed has predicted eight to 12 percent growth in passenger car sales during the current fiscal year. "Considering the pent-up demand and an overall positive outlook, car segment can log up to 12% growth this fiscal on the back of overall stronger economic outlook and higher customer confidence," Economic Times quoted Majeed.
|Company||August 2014(Vehicles sold)||August 2013(Vehicles Sold)||% Change|
|Two Wheelers (August 2014)|
|Company||August 2014(Vehicles sold)||% change|
|Hero Moto Corp||5,58,609||21.43|
Source: The Hindu
As sales of Mahindra dropped, the company's Chief Executive for the automotive division and international operations, Pravin Shah said that the company will continue to be optimistic following auto sector's enhanced business confidence that is reflected by the manufacturing sector displaying signs of revival.
However, last week the Competition Commission of India (CCI) fined 14 carmakers for engaging in anti-competitive practices with a total penalty of over ₹2,500 crore ($420 million).
These car makers disclosed the availability of spare parts and accessories, which led to surge in the price of auto-components, impacting 2 crore customers. According to reports, CCI fines have proven to be non-threatening in previous cases.