Auto sales, excluding tractors, are expected to increase by 5 to 7% this year due to factors such as rising vehicle prices, financing problems and costs of sales. Insurance, said Care Ratings.
The agency revised its outlook after the volume of the industry saw the largest decline, or 13.3% in April-August compared with the previous year.
Last year, auto sales recorded double-digit growth of 14.5%.
This double-digit decline (13.3%) was observed during the same period in 1993, when sales had fallen by more than 21% in one year, he added.
The decline in sales in fiscal 2014 was mainly due to price increases of 15 to 20% due to new security standards, higher insurance and property costs, a liquidity in the NBFC sector and increased load capacity of medium and heavy commercial vehicles that have resulted in inventory, which slows the flow of vehicles, according to Care Rating
"So we revised our outlook for global auto sales (excluding tractors) to 5-7% for fiscal 2010," the report says.
However, in August, sales of passenger cars and three-wheel-vehicles rose by about 1.8% and 9%, respectively, while sales of commercial vehicles and two-wheeled vehicles declined. is reduced to 7.4. % and 0.3% over one month, respectively, compared with a decline of 17.5% and 6.6% the previous month, the rating agency said.
Sales growth over the period was largely limited due to weak demand for commercial vehicles and passenger cars, recording a double-digit decline of 21.5% and 18.8% year-on-year, while that the decline in sales of the two- and three-wheel vehicles segment was limited to 12.2% during the same period. month.
"In the future, we anticipate that demand will remain muted during the second quarter of FY2020 and will only accrue in the third quarter of FY2010 and in the second quarter of FY2010. will continue in the fourth quarter of fiscal 2010 with various planned product launches, festival demand and pre-purchase automobiles prior to the implementation of BS-VI standards of April 1, 2020 " said Care.