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Auto industry turnover grows by 27pct

Riding high on the revival of consumer demand and aided by the Government's fiscal stimulus and low interest rates, the total turnover of the domestic auto industry has risen 27% in the current fiscal.

According to a reply tabled in the Lok Sabha quoting data from the Society of Indian Automobile Manufacturers, the turnover of the entire industry in April to February 2009-10 stood at INR 162,708.77 crore. This is compared to total revenue of INR 128384.53 crore in the same period last fiscal. Individually, the commercial vehicle segment saw the biggest jump in revenues by 31% at INR 38845.09 crore, followed by the 27% revenue growth at INR 76,545.96 crore posted by the passenger vehicle segment in the same period.

Underlining reasons for the slow down in 2008-09, the reply stated that "The slump in the auto industry witnessed earlier was due to factors like inadequate availability of credit at reasonable interest rates, fluctuating and high commodity prices and the impact of the global recession."

(Source:Business Line)