Writing on the wall!
Policy paralysis coupled with European woes and a supremely conservative RBI is leading automotive industry to its worst performing quarter in last two years. With RSOs (Regional Sales Offices) of various OEMs choked up with commercial vehicles and plants coming to a standstill this year is already been written off by most companies. No body's taking a call as to when will the markets bounce back. Although there is hope with Mr. Mukherjee stepping down as the FM.
The industry sentiment seems to be negative overall except the export markets particularly Africa and Middle East. All the OEMs are focusing on exports for salvaging the current quarter. Only Ashok Leyland seems to be doing slightly better in India than its peers due to the South India market which hasn't been as bad as rest of the country. Additionally Leyland is strong in the Defence and Government segments which generally are the silver lining during a slowdown. The government typically expands it's spending to overcome the downturn. Additionally next year being election readiness year, we can hope for a massive expenditure on infrastructure which can help revive the Indian economy.
Personally, I am bullish and see a positive future September '12 onwards specifically for the Indian automotive market. Let's keep our fingers crossed.
Policy paralysis coupled with European woes and a supremely conservative RBI is leading automotive industry to its worst performing quarter in last two years. With RSOs (Regional Sales Offices) of various OEMs choked up with commercial vehicles and plants coming to a standstill this year is already been written off by most companies. No body's taking a call as to when will the markets bounce back. Although there is hope with Mr. Mukherjee stepping down as the FM.
The industry sentiment seems to be negative overall except the export markets particularly Africa and Middle East. All the OEMs are focusing on exports for salvaging the current quarter. Only Ashok Leyland seems to be doing slightly better in India than its peers due to the South India market which hasn't been as bad as rest of the country. Additionally Leyland is strong in the Defence and Government segments which generally are the silver lining during a slowdown. The government typically expands it's spending to overcome the downturn. Additionally next year being election readiness year, we can hope for a massive expenditure on infrastructure which can help revive the Indian economy.
Personally, I am bullish and see a positive future September '12 onwards specifically for the Indian automotive market. Let's keep our fingers crossed.
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