Consumer Durables Sector Posts Positive Growth: Survey

New Delhi, July 28: | Updated: Jul 29 2002, 05:30am hrs
Led by the impressive growth in the electronics and automobile sector, the consumer durable industry posted a positive growth during April-June 2002 signalling higher demand in domestic and exports markets, a CII-Ascon Industry survey has said.

The electronics sector registered an impressive growth with the colour television segment posting 40 per cent growth during the first quarter of 2002-03 as against negative 10 per cent growth last fiscal.

VCRs, VCPs, VCDs and DVDs posted 25 per cent growth in production during April-June 2002 while audio products posted a growth of 10 per cent during the period.

Barring black and white televisions which continued with their negative trend this year too, other segments of the electronics sector such as watches and clocks recorded a moderate growth although exports dropped by 10-15 per cent.

The production of refrigerators surged by 10 per cent from the low growth of 0.2 per cent during April-June 2001.

While the growth in sales of refrigerators surged from 0.5 per cent in the corresponding period last year to 10 per cent, its exports fell from the positive growth of 10 per cent last year to 6 per cent this fiscal.

The main factors affecting the export growth were appreciation of the US dollar, limited opportunity to export due to marginal growth in demand worldwide for appliances and lack of brand equity for the ’Made in India’ label, it added.

A significant turnaround was witnessed in commercial vehicle industry, which recorded a production growth of 24 per cent this year from the fall of 2 per cent last fiscal. While motorcycles registered impressive growth of 49 per cent, scooters remained in the negative region this year too.

Three-wheelers segment grew by 37 per cent during the first quarter while mopeds clocked 4.2 per cent growth in first quarter of this fiscal as against negative growth during the year ago period.

Heavy commercial vehicles (hcvs) segment grew by 38 per cent while production of light commercial vehicles (lcvs) went up by 30 per cent from negative growth last fiscal.

Cars, however, witnessed a negative growth this year but exports rose to 58 per cent compared to the negative seven per cent growth in the last fiscal.

The chamber has suggested better export financing, dedicated berth for automobiles, bringing the packing credit down to 5-7 per cent and developing a market development fund for identifying potential countries for export to improve the automobile exports.