New Delhi, Apr 9: Fueled by government stimulus packages, better demand and lower loan interest rates, the country's automobile industry has reported a whopping 26.41 per cent growth in sales in the year 2009-10 making FY10 one of the best years for the sector.
"When we started the year, we did not expect such high growth, we are pleasantly surprised," said Society of Indian Automobile Manufacturers (SIAM) President, Pawan Goenka while speaking to reporters on Friday, Apr 9.
This encouraging trend in the industry has also made India the second fastest growing market in the world following China, which recorded a 42 per cent growth.
In the domestic market, the sales were driven by car and the two-wheelers. While the cars segment posted a 25.10 per cent growth in 2009-10, the two-wheelers witnessed a 26 per cent surge.
The SIAM has forecasted 10-14 per cent growth for 2010-11.
Answering a query on the outlook for the current fiscal, Mr Goenka said, “Overall the industry is in good shape and most of us are positive about FY'11. We have some concerns and if no major surprises happens, we should have good growth of 10-14 per cent for the industry."
Some the roadblocks that the automobile industry may encounter in the coming months include commodity prices, excise duty hike, rise in interest rates and price rise of vehicles due to the new emission norms, Mr Goenka informed.