Slowdown hits auto companies production.
NEW DELHI: The economic slowdown is taking its toll on the Indian auto industry, once seen as the world's most promising by global automakers, who banked on the market to counter the slowdown in Europe and US. Slowing growth has dampened sentiments of buyers, who are reluctant to engage in new purchases at a time when interest rates and fuel prices remain high. The result — output cuts across segments and new investment plans being put off.
Indicating that tough times are here for long, companies have started slashing production, which is alarming considering the ripple effect of the move on allied industries like auto components and retail outlets. And, the downturn has also hit other key segments like medium-and heavy-commercial (M&HCV) vehicles and two-wheelers.
The coming months are expected to be even tougher. The car industry has seen four consecutive months of decline in production (year-on-year). A severe crunch in demand for petrol cars has hit the segment badly, and petrol capacity is lying idle at factories as inventories pile up at dealerships.
NEW DELHI: The economic slowdown is taking its toll on the Indian auto industry, once seen as the world's most promising by global automakers, who banked on the market to counter the slowdown in Europe and US. Slowing growth has dampened sentiments of buyers, who are reluctant to engage in new purchases at a time when interest rates and fuel prices remain high. The result — output cuts across segments and new investment plans being put off.
Indicating that tough times are here for long, companies have started slashing production, which is alarming considering the ripple effect of the move on allied industries like auto components and retail outlets. And, the downturn has also hit other key segments like medium-and heavy-commercial (M&HCV) vehicles and two-wheelers.
The coming months are expected to be even tougher. The car industry has seen four consecutive months of decline in production (year-on-year). A severe crunch in demand for petrol cars has hit the segment badly, and petrol capacity is lying idle at factories as inventories pile up at dealerships.
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