Several passenger car companies in India are expecting to achieve a double-digit growth in sales this year. The Society of Indian Automobile Manufacturers (SIAM) had earlier projected an expected sales growth of 5-6 per cent for 2009-10. Surprisingly, the auto industry has grown by 9.45 per cent since the beginning of this year, and the upward trend is expected to continue in the coming months. The high growth percentage has been achieved partly on the back of a low base in the year 2008-09. President of SIAM, Mr. Pawan Goenka, said that he expected growth for the whole industry to be in the high single digits. Maruti Suzuki President and CEO, Mr. Shinzo Nakanishi, said that the company is looking at a 10 per cent growth this year, compared to only 2 per cent last year. Hyundai Motor, Mahindra & Mahindra, Honda Siel and Fiat India, all expect to achieve double-digit growth in 2009-10.

Industry analysts have ascribed the astounding growth of the Indian auto industry to five main reasons – the periodic launch of new models, the three stimulus packages announced by the government since December 2008, the low excise duty on small car manufacturing, cheap auto loans, growth in rural markets and the increase in car exports.

Courtesy: www.driveinside.com