Car Sales in India ain't goin' anywhere

Are car sales in India up this month? Yes, according to leading auto financiers. But Auto analysts don't seem to see it that way.

Manas Chakravarty and Mobis Philipose writing in HT Mint say that in fact Auto analysts are anything but sanguine about the prospects of the domestic passenger car segment. An analyst with a foreign brokerage, who didn’t want to be identified, dismisses the automakers’ optimistic assessment saying that it doesn’t make any sense to compare sales with those of the preceding month because it represented a low base. On a year-on-year basis, he expects sales to drop by 15-16%. This may be lower than the decline of about 24% last month, but nothing to get excited about.

Not many consumers are in the mood to make big-ticket purchases, given the precarious economic situation. With layoffs and salary cuts on the rise, the number of consumers willing to commit to large EMIs (equated monthly instalments) is dwindling.


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