Pune: With eight months of slowdown since July 2018 and February sales continuing to be in the red across all vehicle segments, the passenger vehicle (PV) industry is likely to close the FY19 with just about 3 per cent growth as against 8-9 per cent projected
Automobile honchos and analysts said the low consumer demand caused by higher interest rate, slowing industrial output and moderate economic activity ahead of general elections scheduled for May were denting sales.
Although auto sales last month showed a sluggish trend, overall sales were positive in all key segments during the April 2018 to February 2019 period.
Cumulative PV sales in the first 11 months rose 3.27 per cent to 3,085,640 units compared with 2,987,859 units sold last year.
With just one month more of sales to contribute to the final numbers, the Society of Indian Automobile Manufacturers or Siam, the apex trade body on Friday said it is expecting the PV segment growth at about 3 per cent at the end of this fiscal. Siam had earlier forecast sales growth for fiscal 2019 at about 8-10 per cent.
"The market is down and we don't expect it to improve until general elections are over and the new government is formed at the Centre," Sugato Sen, Deputy Director General at Siam told Financial Chronicle, pointing out the liquidity crunch situation.
While FY2017-18 ended with gross total auto sales growth of 14.22 per cent at 24,972,788 units, this has been halved to 7.03 per cent in the first 11 months until February, with sales tallies recording total volumes at 24,357,054 units.