Auto Sales In India

Compared with last year, both India and China have lower growth this year. India saw its domestic automobile sales increase by 7% this July though last year’s low base - due to the labour unrest at Maruti's Manesar plant - is partly responsible for that revival. At the same time, motorcycle sales growth is down to 5% in July while overall two-wheelers have total 7.5% growth. At present, fuel price is still a big road block. If the banks start tweaking their auto loan rates, they will start to with home loans. Most of the industry expects auto sales to pick up speed from October as the festival demand comes.

Not only Indian component companies who supply to global Tier 1 vendors, but also global car makers who source vehicles from India for export in selecting global markets will be impacted by North America and the BRIC (Brazil, Russia, India, China) world. For instance, Hyundai is exerting its export buffer to make up for the slack in domestic demand. In result, factories in India do not need to idle as some other auto companies have had to do. Moreover, many multinational corporations are showing decent growths like Ford export vehicles from India to South Africa for example. Furthermore, GM will set higher targets for its suppliers as home demand in US increases.