Automotive industry shows signs of slowdown: Industrialist

A slowdown in the automotive industry is expected this year owing to increase in the prices of vehicles and fuel, among others, a top industrialist said on Monday.

"Commercial vehicle sales are likely to be impacted on account of increase in price of vehicles, diesel prices and higher interest rates," T T Srinivasaraghavan, Managing Director, Sundaram Finance Limited told reporters.

Announcing Sundaram Finance's annual report here, he said the company recorded a net profit of Rs 295.23 crore on March 31 this year as against Rs 226.74 crore registered last year.

The company's net NPA as on March 31 stood at 0.20% against 0.45% last year.

Srinivasaraghavan said passenger cars and utility vehicle sector too are projecting to grow at a lower trajectory.

Noticeable components of Sundaram Finance's business are commercial vehicles (52%), car (33%) and construction equipment (7%).