Tough time for auto industry until early 2012: ASSOCHAM [Feb 2012]

February 10, 2012 7:02 am

The automobile industry in India may feel the heat until the initial months of financial year 2012-2013. A study by the ASSOCHAM states that this is likely to happen owing to the reduction in demand of cars, primarily because of the increase in prices.
“Rising interest rates, steep and steady rise in input costs, unregulated price hike in raw material, sudden depreciation of rupee against major currencies together with labour pangs are certain key reasons behind the alarming drop in passenger car sales which shrunked to just over 4 per cent between January and November and dramatically rose to nearly seven per cent in November,” said  DS Rawat, Secretary General of ASSOCHAM while releasing the chamber’s analysis on ‘Indian Auto Industry: The Year Ahead’.

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