Auto sales tame down

Snowed under the old phantoms of imported cars and exorbitant inflationary pressures, car sales in 1QFY13 gashed by 30 percent quarter-on-quarter, to tally 26,806 units.
On monthly basis, car sales posted a decline of 9.1 percent clocking in at 8,481 units as of September which is a record low over 15-month period. The foremost reason behind the misty car sales performance is the termination of local small cars (Alto and Cuore) whose sales were gobbled up by the similar imported cars.
Sales of buses have improved by around 61 percent which is mainly backed by the sales of Hino which surged by 96 percent. On the other side of the picture, the sales of Isuzu slashed by 75 percent, while the sales and production of Master buses completely purged in the 1QFY13.
Informed sources highlighted that institutional buying had improved in July FY12 which resulted in the significant sales figures in the buses cadre in the 1QFY13.
Sales of trucks plunged by 10.7 percent on quarterly basis whereas MoM, it slashed by 31.6 percent showing the smallest figure of 80 units as of September. While the sales of Nissan and Isuzu have mounted by 39 percent and 61 percent respectively mainly because of the commercial buying that had emerged in July, the dip in sales is mainly caused by the two bigger players, Hino and Master whose collective sales slashed by 23 percent.
The sales volume of jeeps and pick-ups plummeted by 16.5 percent and 34.2 percent respectively but MoM, the sales of pick-ups improved by 20.4 percent resting at 1214 units as of September.
Contrary to cars, trucks and jeeps, the sales of tractors exhibited an impressive boom of 96 percent which is largely backed by the sales of Fiat tractors whose sales climbed to 3,489 units in the 1QFY13 as compared to 950 units in the previous period. The sales of Massey Ferguson also perked up by 46 percent. Once again, government schemes aimed at incentivizing and supporting farmers played a part in the improved tractor sales.
The sales of motorcycles and three-wheeler dropped by 6.8 percent quarterly while MoM, it improved by 3.5 percent showing the maximum figure of 69,302 units in September.
Clued-up with the research, the automobile sector shows an even-handed picture henceforth. The auto assemblers are involved in meeting with authorized government officials for the upcoming Auto Industry Development Program (AIDP) which will be effective for the next five-year period.
Any development over dropping age limit of refurbished cars along with depreciation rate would be helpful for the sector. Moreover, the ease in the interest rate is likely to compel the banks to reignite consumer financing which might aid the automobile sector.