India is a developing country in the car industry. People of India are showing much interest in buying the new versions and new launches, as there is hike in sales day by day.
According to the forecast made by the SIAM( Society Of Indian Automobile Manufacturers), the auto industry, Indian Car industry is maintaining a double digit because of the economic revivals and new models.
SIAM said that car sales are expected to grow by 12-13% in 2010-2011. The car sales during the last year i.e., from 2009 to 2010 were 1.5 millions. Whereas, the car sales were expected to be 1.7 million units by the fiscal-end.
Some areas of concern for growth in the sales are ability of the suppliers to meet the increased demands, rising cost of inputs, and upward bias on retail interest rates. Production has been strained because of the supply constraints.
Because of the increase in the commodity prices like natural rubber, the vehicles will become expensive, which might have an impact on the sales. The demand will be impacted by the change in EMI. The demand is also influenced by the infrastructure. So, the two factors like income levels and the infrastructure will improve the car sales and more and more people will show interest in buying.
If we consider individually, SIAM opined that 17-18% growth has been observed in total truck and bus sales and it is 6.2 lakh. 9-10% i.e., 8 million units sales growth has been observed in motorcycles, while scooters was around 1.65 million i.e. 13-14%.
While coming to the car sales, expected cars sales will be around 1.7 millions i.e., 12-13%.