EXPORT IMPORT DATA

Date : 31-Dec-2013
Subject : Automobile players in India to face new challenges in 2014

The year 2013 was not a very encouraging year for Indian automobile market as the sales went through a record low reflecting the negative sentiments in the market. The slowdown has also severely affected growth in domestic sales which was a slim 1.2% in 2013 (Jan-Nov) as compared to 6.2% during 2012 and 14% in 2011.

Many automobile companies shifted attention to exports but then that too seemed to lose its sheen. According to Dun & Bradstreet India, auto exports grew by 5% which was primarily pushed by two wheeler exports at 4.2%. If year 2013 was warm for exports, the New Year too will not bring any relief to the manufacturers because of the non-tariff barriers and preferential duty agreements inked by EU with certain African and Latin American countries. These statistics do not support India’s Global export hub dream.

The two wheeler industry which plays a major role in sales also suffered in 2013 because of raised fuel prices, high interest rates and inflation. Analysts claim that these factors were responsible for damaging the sentiments of the prospective consumer. The domestic sales growth which was 15.9% in 2011 has drastically dropped to 4.1% in 2013. In 2014, there will be a slight change in this trend as it is expected that the sales will pick up from second half of 2014 provided there is moderation in inflation levels and also uplift from low sentiments of customers.

Rising fuel prices and high interest rates have further increased ownership costs. The same will continue in the following New Year too. Car makers however see an opportunity in later half of 2014 where they hope to regain lost ground. Also, the difference between petrol and diesel prices has come down so the trend of diesel cars overpowering their petrol counterparts will drop as diesel cars are more expensive.

Weak sales and heavy discounts will further reduce profit margins as companies strive hard to get sales growth. This slowdown in profit margin will remain till first half of 2014 as post that there is some hope of revival.

Source:- cartrade.com
 


Welcome Guest
User Login
Username or Email
Password
» Register Now
» Forgot Password ?

Cybex in media









Enquiry Form
Name*
Company Name
Company Address
Phone*
Email*
Products
Information Sought
Image Verification
*Compulsory Fields

EXIM NEWS - EXPORT IMPORT
  • Rubber Growers Demand Sops From Government
    The Centre Should Urgently Step In To Give An Export Price Incentive Of At Least R5 Per Kilo For Indian Rubber, Leading Growers Of The Commodity Have Said.
  • Budget 2017: Steel Min Seeks Import Duty Reduction On Coking Coal, Nickel
    New Delhi: Ahead Of The Union Budget 2017-18, The Steel Ministry Has Sought Reduction In Import Duty On Both Coking Coal And Nickel -- Vital Components Of Steel Making -- A Move That May Revive The Sector, A Top Official Said.
  • India’S Oilmeal Exports Jump 130 Per Cent In December
    India’S Export Of Oil Meals More Than Doubled In December 2016 Mainly Driven By High Demand Of Non-Genetically Modified (Gmo) Soybean Meal From France, Said Solvent Extractors’ Association Of India. Read More At: Http://Economictimes.Indiatimes.Com/Articleshow/56420322.Cms?Utm_Source=Contentofinterest&Utm_Medium=Text&Utm_Campaign=Cppst
  • Import Duty Hike May Hit Jewellery Exports To Dubai
    Several Exporters May Even Set Up Shop In Dubai, As Jewellery Made There Falls Outside The Duty Net
  • Indian Rupee Closes Little Changed Against Us Dollar
    After Erasing Most Gains, The Indian Rupee Closed At 68.18 A Dollar, Up 0.03% From Monday’S Close Of 68.21
  • Top 10 Farm Exports: Cotton No Longer Key In Farm Story
    For The First Time Since 2005-06 When India Became A Major Exporter Of Cotton Following A Large-Scale Adoption Of Bt-Seeds, The Fibre Has Failed To Be On The List Of The Country’S Top Ten Farm Export Items.
  • Imported Gold Worth $2 Billion Used For Conversion From November 11-20
    Mumbai: The Latest Estimates Of Gold Imports By A Leading Industry Source In The Days Following Demonetisation Shows That Certain Entities In The Gold Trade, In Possible Collusion With Some Bankers, Helped People Convert Their Black Money To Gold Bars And Jewellery.
  • Car Exports Gain Speed, On Track In Fy17
    Prospects Of A Double-Digit Growth In The Domestic Passenger Vehicles Market In The Current Financial Year Look Uncertain After Demonetisation But A Stronger Growth Story In The Export Market Seems Intact. Passenger Vehicles (Cars, Vans And Utility Vehicles) Exports Are On Track To Hit A New Record In Fy17, As Shipments Continue To Post Strong Double-Digit Growth.
LATEST NOTIFICATIONS