03 January, 2012

You will be care "ed" in 2012

The Deloitte report ‘Driving through BRIC markets – Lessons for Indian car manufacturers’, analyses the impact of macro-economic conditions in similar growth markets and addresses concerns on sustainability of sales growth in India.“If inflation comes down by the second-half, car sales will have a strong upsurge. In India and China, the urban market still has headroom to grow, which will stay for some time,” Mr Kumar Kandaswami, Senior Director at Deloitte Touche Tohmatsu India, told Business Line.

Car sales in the country are estimated to post just a 3 per cent rise in 2011, largely as spending dipped on a small 2.4 per cent growth in personal disposable income. In the year, interest rates, fuel and food prices, all went up.

One of the main drivers is that household incomes are rising fast – from the $3,000-5,000 group, many are moving to $5,000 and above (CAGR of 35%). “This will lead to sustained demand, though for a decade or so, small cars will be most important,” he said.

Wishing you all my dear blog Readers a best journey in 2012 and a new car too :)