Auto industry to end FY10 with 10% growth

Written by Shweta Bhanot | Updated: Oct 30 2009, 05:49am hrs
Pawan Goenka, president, automotive sector, Mahindra & Mahindra (M&M), and president, Society of Indian Automobile Manufacturers (SIAM), in an interview with FEs Shweta Bhanot, said the automobile industry has an inherent ability to grow at 10% Excerpts:

Do you see volume recovery sustainable in the remaining two quarters

If the stimulus package is not pulled back, raw material prices remain favourable and interest rates do not rise, the industry will thrive on good volume growth. Last quarter, I had projected the auto industry to close this financial year (FY10) with a single digit growth. However, now 10% growth looks achievable. Medium and heavy commercial vehicles is one segment which is still under pressure but the September quarter saw positive turnaround in the segment. If this trend continues in the third and fourth quarter, the industry should be able to end this fiscal with 10% growth. The Indian automobile industry has an inherent quality to grow at a rate of 10% and is sustainable for several years, unless some economic reason hampers it.

There are concerns of interest rates going up by 100-150 basis points in the coming quarters What is the stand of the industry on the same

I can just hope it doesnt happen as it will impact the volumes of the industry.