While the Indian auto market has been witnessing cyclic ups and downs in the past, the current slowdown is the worst-ever in its career. There is slowdown across segments and the sentiment is very negative. The prolonged spell of the current downturn has cast a gloom in the market. Automobile dealerships facing a host of challenges are finding it difficult to stay afloat.
The historical evidence clearly suggests that the fate of the Indian auto market is essentially linked with the pace of economic growth and development. The present economic environment being what it is, automobile dealers in general do not expect normalcy to return soon.
The current uncertainties notwithstanding, the Indian automotive market is poised for steady growth going forward. Growth drivers such as rising income levels and changing lifestyles, particularly the growing aspirations of rural India, increasing urbanisation necessitating increased mobility needs, low penetration levels and changing consumption pattern, are in place to fuel healthy demand in medium and long runs.
This was the unanimous view that emerged at the 49th Annual Session of the Federation of Automobile Dealers Associations (FADA) held in New Delhi on September 6.
At the AGM, Mr. Mohan Himatsingka, Mr. K.V.S. Prakash Rao, Mr. John K. Paul and Mr. Mukesh Jain were re-elected President, Vice President, Hony. Secretary and Treasurer respectively for 2013-14.
Speaking on the occasion, Mr. Joginder Singh, President & MD, Ford India, who was the chief guest on the occasion, said: “While the Indian market is passing through turbulent times for over a year, the long-term outlook is bright.”
Expressing his view that the centre of gravity is shifting from North America and Europe to Asia and Asia Pacific, Mr. Singh expected the global auto market to grow from 82 million vehicles to 110 million vehicles annually by the end of the current decade, of which India would account for nine million vehicles, thereby becoming the third largest market in the world. He exhorted the automobile dealers to stay focused on the long term and to recalibrate according to the changing scenario.