Boston, MA -- (SBWire) -- 03/15/2013 --BMI believes new forecasts released by the Society of Indian Automotive Manufacturers (SIAM) in October 2012 are too bearish. SIAM now expects passenger car sales to grow by 1-3% for FY2013 from a previous forecast of 10%. According to S Sandilya, the President of SIAM, the slowdown in economic growth coupled with high interest rates will further decelerate growth.
However, we agree with the headwinds seen by SIAM for the Indian auto market and are also revising our FY2013 forecasts for the overall passenger vehicle sales market downwards to come in at 2.86mn units, a growth rate of 6.8% from 9.1% previously. On the whole though, we are more bullish on India's auto industry than SIAM.
View Full Report Details and Table of Contents
While SIAM citied the recent diesel price hike as one of the reasons to downgrade growth in passenger car sales to 1-3%, we do not believe that the hike will have such a huge negative impact on this segment. We do not expect the spread between diesel and petrol to narrow much further going forward due to political pressures to maintain diesel subsidies. Although the price of diesel has increased, it is still much cheaper than petrol. Therefore, the strong demand for diesel vehicles is expected to continue.
Moreover, while sales of passenger cars and vans have stagnated recently, utility vehicles (UVs) such as MUVs have enjoyed very strong year-on-year (y-o-y) growth for the past few months. It is our view that this segment will outperform the overall passenger vehicle market going forward and we expect this strong growth in UV sales to continue and provide an additional boost to overall passenger vehicle sales for FY2013.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Transportation research reports at Fast Market Research
You may also be interested in these related reports:
- Malaysia Autos Report Q1 2013
- Vietnam Autos Report Q1 2013
- Mexico Autos Report Q1 2013
- China Autos Report Q1 2013
- Brazil Autos Report Q1 2013
- Japan Autos Report Q1 2013
- Hungary Autos Report Q1 2013
- Pakistan Autos Report Q1 2013
- Argentina Autos Report Q1 2013
- Canada Autos Report Q1 2013
"India Autos Report Q1 2013" Is Now Available at Fast Market Research
Fast Market Research recommends "India Autos Report Q1 2013" from Business Monitor International, now available