Automobiles & Auto Components    
SECTOR | 10 Oct 2017
While RBI Governor Urjit Patel sounded upbeat, auto sector thinks economic demand will slow

The RBI Governor Urjit Patel had expressed optimism on India's growth recovery in the second half of the financial year, saying that green shoots were visible in IIP numbers, as well as in the Business Activity Index. He estimated that "growth will pick up in the third and fourth quarters" of the current FY to cross 7%. 

The auto industry lobby group Society of Indian Automobile Manufacturers (Siam) however differed, and sounded a bleaker note today, saying that rising fuel and commodity prices, as well as "frequent policy changes" are likely to impact overall economic growth as well as auto sales. The September sales of passenger vehicles were the slowest since July, growing 11.32%, compared to 15.1% for July. Diwali and Dhanteras are important periods for the auto sector in sales, and analysts will be watching the sales numbers for the festival month of October. 

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