The automobile market in the first half of the year grew largely due to the export sales, which has increased by over 24 per cent compared to last year. A slew of incentives in the European countries, including scrapping of old cars and replacing them with fuel-efficient cars, has spurred the export market, according to the Federation of Automobile Dealers Associations president, SP Shaw.
However, there is a need for the government to provide a cushion in the form of incentives to the automobile segment to continue the growth momentum. The growth in the second half of the year would be less than the first half of the year, he said.
Speaking to mediapersons after the inauguration of the International Auto Show, a three-day exhibition which kicked off here on Friday, he said the commercial vehicle market was standstill for sometime and there were no signs of revival in the near future as availability of funds was still a problem.
However, the car market in India is growing at a steady pace and India is now seen as the small car manufacturing hub.
This is for the first time that the Auto Show is being held in Hyderabad and 27 dealers were showcasing products of various makes. Beginning this year, the Auto Show would be held annually in Hyderabad.
Source : Business Line