Posts Tagged ‘cars’

Manufacturing Sector Showed Firm Indications of Recovery

Confederation of Indian Industry (CII) survey said India’s manufacturing sector showed firm indications of recovery and was on a higher growth trajectory in the first half (H1) of the current fiscal (2009-10).

However, the survey compared results for April-September 2009 with April-September 2008 and showed that growth rates in the majority of sectors had positive trends in the first half of 2009-10.

Meanwhile, there is also a significant shift in the trends, from the negative and moderate growth category to the high and excellent growth one, as 12% of the sectors registered such a shift in H1 2009-10 compared with all of 2008-09.

The buoyant manufacturing growth in the first half is led by a rise in production of basic goods, intermediate goods and consumer durables while around 10% of the sectors surveyed registered an excellent growth rate in H1 2009-10.

On the other hand, the share of the sectors registering moderate growth declined to 35.8% in H1 this year while Q2 witnessed substantial decline in the share of sectors recording a negative growth rate, to 19.4% from 40 per cent in the first quarter of the current year.

Sectors showing a greater growth rate increased to 35.5% of the total in July–September 2009 while sectors registering an excellent growth rate of above 20% include nitrogen gas, phosphate, motor starters, industrial gasses, and construction equipment.

A high 10-20 per cent growth rate was registered by pumps, light commercial vehicles, cars, scooters and other consumer durables like electronics and home appliances.

Moreover, 20 of 29 sectors have reported negative growth rates in the first half of 2009-10 and with the exception of soda ash, machine tools, cars, multipurpose vehicles and biscuits, all other sectors reported negative and moderate growth rates.

Indian Small Car Exports to Europe Started Decreasing !

As scrap page schemes in several European markets are set to lapse,exports by Indian small-car producers have started declining.

As scrap page schemes in several European markets are set to lapse,exports by Indian small-car producers have started declining.

As scrap page schemes in several European markets are set to lapse by the year-end, exports by Indian small-car producers such as Maruti Suzuki and Hyundai Motor have started declining.


However, on the back of incentives offered by Germany, France and the UK in order to help owners of older cars and vans buy new fuel-efficient vehicles these automakers saw exports increase 35-40 % in the last few months.

Moreover, Germany and Austria concluded their scrappage programmes and other countries are likely to end their schemes by December hence as exports to Europe start decreasing, Indian carmakers have started looking at non-European markets.


Additionally, till September 30, Maruti Suzuki had exported over 58,500 units,
with A-Star accounting for 33,500 units,
Nissan Pixo at over 25,000 units and
other models contributing about 7,900 units
while its exports of 1.3 lakh units in 2009-10
against 70,023 units in the last fiscal year.

However, Maruti Suzuki’s exports is not likely to cross 1.16 lakh units this year as many European countries have withdrawn their scrappage schemes.


On the other hand, Hyundai Motor India (HMIL) too benefitted from additional European export orders where more than 50% of their exports are targeted at European countries with Germany accounting for the maximum and aims to export about 2.7 lakh units in 2009-10 against 2.45 lakh units last year.


Further, in order to qualify for the scrap page benefit, the emission levels in the new car should be below 160 g per km while Germany had created a € 5 billion fund for the old-car scrappage scheme, doling out € 2,500 incentive for a fuel-efficient new car.

France had set aside € 220 million, offering € 1,000 and a deferred tax benefit of up to € 5,000 for a new car.


Read Full Story on Economic Times.