Automobile Industry Performance

sunandaC

Sunanda K. Chavan
Automobile Industry Performance during 2003 – 04


During the year 2003-04 the automobile industry has registered a growth of around 16.5 per cent in numbers and 24 per cent in value terms. Passenger cars saw a 35 per cent growth in FY04 over the previous fiscal while medium and heavy commercial vehicles witnessed a 46 per cent growth.

Segment-wise Performance

Passenger Vehicles

The excise duty reduction on passenger vehicles given in the union budget 2003-04 has directly impacted the sales of passenger vehicles positively as it has reduced the acquisition cost to the customer.

The cumulative passenger vehicle sales in the domestic market in April-March 2003-04 have grown by over 27% over the same period last year. However, this is against relatively low and negative growth rates in the previous years.

Within the passenger vehicle segment, while passenger cars and utility vehicles have grown at a brisk pace of 28.6% and 27.6% respectively, MPVs have grown at a lower rate of around 14.5%. However, the growth of MPVs this year is significant as it was (-) 15.7% in the last year.

Passenger Cars & MUV’s Annual Production

FY 2003 TO 2004 in Nos

MUV -16%;

CARS – 84%

Passenger Cars Sales Segment-Wise Market

Distribution FY 2002 TO 2003 in Nos

Upper C 3% 3%

Misc 3%

Lower C 10%

Luxury D 2%

A Seg 32%32%%

Upper B 16%%


Lower B 34%

Commercial Vehicles

The performance of the commercial vehicle segment during the course of the year was very satisfying. It has clocked over 30% growth rate in consecutive years.

The growth rate of all commercial vehicles during the year 2003-04 grew by 36.5%. M&HCV segment has grown by 39.5% whereas LCVs grew by 32%.

With improved economic performance especially in the agricultural sector besides expansion of the national highways and expressways, we are also witnessing fleet rationalisation in the country.

This has also led to increased penetration of multi-axle vehicles on our roads. During the year 1998-99 sale of Multi axle vehicles was 4539. Whereas, in the year 2003-04, 59251 multi-axle vehicles were sold.

In percentage terms an increase of 67% per annum over a five year period. The share of multi-axle vehicles during the same period has gone up from hardly 5% to around 40%.

Commercial Vehicles Annual Production

FY 2002 TO 2003 in Nos

BUSES 10%

LCV 41%

TRUCKS 49%

Exports

The performance of the automobile industry in exports is also encouraging. Passenger vehicle exports have crossed the hundred thousand mark and clocked sales of around 1,30,000 and two & three wheelers have crossed three hundred thousand mark for the first time clocking around 3,33,000.

Commercial vehicle exports have also increased to an all time high of over 17,000. In percentage terms the growth during the year over the previous year have been almost 80% for passenger vehicles, over 49% for two & three wheelers and over 40% for commercial vehicles.
 
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