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SIAM expects Car Sales to grow by 10-12% in 2012-2013

12th April 2012, 16:43 by Munjal Savla

The SIAM (Society of Indian Automobile Manufacturers) has released cumulative sales figures for the 2011-2012 financial year, and a forecast for the new period beginning in April 2012. Here's a sector-wise summary of the same:

Passenger Cars Segment:

Car sales crossed 20 Lakh (2 Million) units for the first time ever. 20.16 lakh to be precise!
2.19 % growth in car sales. That's a steep drop, when compared to the 29% growth of 2010-2011, and 25% in 2009-2010. The growth is the slowest since the 2008-09 fiscal year, when sales rose only 1.4% (due to the impact of the global financial crisis).
Notably, car sales could have ended up in negative growth, but the fear of excise duty hikes in the budget led to a surge in the last quarter, particularly in March 2012 (19.66% growth). This was also a time when several carmakers recorded their highest-ever monthly sales.
10-12% growth expected for 2012-2013.
Overall, the car industry took a blow from the high interest rates and rising fuel prices in the last fiscal. Then, Maruti's labour woes at the Manesar plant also dropped supplies. Interestingly, no other manufacturer really gained from Maruti's troubles.
According to the RBI, interest rates will come down, while the GDP will grow at 7.5 - 8%. This will hopefully provide an impetus to the growth of the automotive sector.

Two-wheeler Segment:

12% growth in overall sales. 1.34 crore units sold in the current fiscal (2011-2012), up from 1.17 Crore in the previous (2010-2011).
Motorcycle sales crossed 1 Crore (10 Million)!
Two wheeler segment expected to grow by 13-14 % in 2012-2013.
Rural sales contributed more than 40% of overall sales for the first time.
Honda Motorcycle and Scooter India (HMSI) became the third largest two-wheeler company, overtaking the TVS Motor Company.

Commercial Vehicles: