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Slowdown – Auto sales crashing south

Posted by fairval on November 23, 2008

There is some real depressing news coming out of auto sector. It is expected that car sales will fall in Nov, by as much as 15% over previous year. Car sales were down 10% in Oct.

The car segment posted growth of 3.5 per cent from April to October this financial year as against 13.4 per cent recorded during the seven-month period last year, said a news item in BS.

At this rate, car sales will show a decline in FY09 over FY08, by the time FY09 is thru.

CV sales are already heavily negative. For Oct’08, they were down something like 36%. For Apr-Oct’08, CV sales are down 15-20%.

2-wheeler sales are still growing, but the final FY09 tally may be 5-6% growth for 2 wheelers.

Overall, the auto sector growth rate will be well below 5%, and perhaps barely positive (since 2 wheelers have a large share in overall nos)

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