Unseasonal rains, high interest rate may affect the growth of auto industry
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Rural demand is particularly affected by unseasonal rains. According to the Federation of Automobile Dealers Association (FADA), an organization of vehicle dealers, the growth of the industry is going to decline. The automobile industry registered a double digit growth of 21 per cent in total retail sales in FY 2022-23.
New Delhi. Unseasonal rains, higher interest rates on vehicle loans and increased input costs due to new regulatory norms have prompted the auto industry to remain cautious in the current financial year. Unseasonal rains are affecting rural demand in particular. According to the Federation of Automobile Dealers Association (FADA), an organization of vehicle dealers, the growth of the industry is going to decline. The automobile industry registered a double digit growth of 21 per cent in total retail sales in FY 2022-23. This was the first Covid-free year for the industry after a gap of two years. The industry growth is expected to come down to single digits in the current financial year amid a high base effect.
As per the data shared by the dealer association, the total domestic vehicle retail sales stood at 2,21,50,222 units in FY 2022-23 as against 1,83,27,326 units in FY 2021-22. Shashank Srivastava, senior executive officer (marketing and sales), Maruti Suzuki India, said unseasonal rains in March and early April might have dampened sentiment in rural areas. “Unseasonal torrential rains in north and central India have destroyed major rabi crops and delayed harvesting, which will negatively impact sales in rural areas,” Fada said. Another concern of automakers is the high interest rates on vehicle loans.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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