The government Thursday said the production of passenger cars marginally declined by 1 percent year-on-year to 15.9 lakh in April-November 2012 due to factors including slow economic growth and high interest rates.
New Delhi: The government Thursday said the production of passenger cars marginally declined by 1 percent year-on-year to 15.9 lakh in April-November 2012 due to factors including slow economic growth and high interest rates.
"Due to the increase in fuel price, low GDP growth rate, exorbitant material cost, high interest rates and slow economic growth, the production growth (of passenger cars) has reduced to a marginal 1 percent during April-November 2012-13 against its corresponding period in the last fiscal," Minister of Heavy Industries and Public Enterprises Praful Patel said.
Out of the 16 car manufacturers, nine companies have reported decreased production, three more companies have reported only marginal growth (less than 4 percent) and only four companies "have been doing well", he said in a written reply to Lok Sabha.
Among the companies which registered a production decline in the first eight months of the current fiscal, Fiat India Automobiles witnessed a 47 percent drop in output, followed by Mercedes Benz India 26.8 percent, General Motors India 23.7 percent and Volkswagen India 23.2 percent, Patel said referring to Society of Indian Automobile Manufacturers (SIAM) data.
However, he said, companies which performed well in terms of cars production during the period under review include Renault India which registered a year-on-year growth of 616 percent, Honda Cars India 83 percent and Toyota Kirloskar Motor 19.8 percent and Nissan Motor India 13 percent.
According to the SIAM, he said, passenger car production in India was growing at a rate of over 17 percent during the last 10 years.
Further, the minister said, to boost the production of cars, various steps have been taken in pursuance of Automotive Mission Plan (2006-16) and the new Foreign Trade Policy provides additional incentives.