Signs of revival show steady rise in car sales
November 30, 2009 10:33 am
The global economic meltdown has taken its toll virtually on every industry and auto industry is no exception. However, early signs of revival have led to steady rise in auto sales owing to increased consumer demand to buy vehicles, especially during the festive season. Therefore, auto firms are all set to make profits. It is expected to report higher revenues and profit for the quarter that ended on September 30. Better financing facilities and lowering of commodity prices have also contributed to higher sales, which in turn have ensured higher profits. The decline in commodity prices between October and December 2008 has been a blessing in disguise for the auto sector.
Growth rates of the leading auto manufacturers in India reflect that the auto sector is on the path of revival. Maruti Suzuki’s sales have increased by 16 per cent during the current financial year. The scrappage schemes on old cars announced by countries such as Germany, Italy and France have further helped Maruti to increase its sales.
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