Volumes across segments in the auto space witnessed a decline.

Passenger car sales over the past 5 months

As has been the case in FY14 till now, there was no respite for the auto industry in the month of November 2013 either. Volumes across segments in the auto space witnessed a decline. Domestic passenger car sales were down by 8% YoY during the month. The performance of commercial vehicles (CVs) was even worse as volumes declined by 29% YoY. Only 2 wheelers managed to record some growth as volumes were up 5.5% YoY. Slowdown in the economy and firm interest rates and fuel prices has been the primary reason for the dismal performance of the industry. There were considerable expectations from the festive season, but the latter turned to be quite average. The rest of the fiscal year is largely expected to remain tepid as well. But there are hopes that FY15 onwards, a recovery in the economy and cons equently the auto industry will take place.