Auto industry likely to grow by 10-12% in FY13:SPA Research

SPA Research has come out with its report on auto industry. As per the research firm, demand in tractors may pick up from May, as farmers starts realizing proceeds from rabi crops and improvement in crop prices. The auto industry is expected to grow at a rate of 10-12% in 2012-13.

Auto volumes in Mar 2012 were strong due to buying in cars, on account of anticipated increase in excise duty by 2% & imposition of tax on diesel cars in Budget 2012-13. Demand in 2-wheelers & tractors were a little sluggish on account of slower retail demand, lower rural income and higher base of last year. Demand has also been robust in CVs, as historically it has been a very strong month in terms of sales, as buyers expedite their purchases to take depreciation benefits. LCVs continue to show strength with the expansion of hub and spoke model leading to last mile connectivity. Total sales in FY12 were up by 11.5% YoY.

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