Spiky rates, output cuts hit car sales in August

Spiky rates, output cuts hit car sales in August


NEW DELHI, SEPT 9:
Domestic passenger car sales fell 10.08 per cent for the second consecutive month in August, on account of high interest rates and production cuts by market leader, Maruti Suzuki India.

In August 2011, domestic passenger car sales stood at 144,516 units, against 160,713 units in the same month last year, according to figures released by the Society of Indian Automobile Manufacturers (SIAM).

“We are hopeful of a turnaround in sales with the onset of the festive season. Good monsoons should bring much needed relief.

However, any further rate hike would be fatal for the industry,” SIAM Director General, Mr Vishnu Mathur, told reporters here.

Mr Mathur said that sales in September and October would be crucial in determining industry performance this fiscal.

Entry-level cars being most sensitive to price hikes and high interest rates have taken the biggest hit, he added.

Bullish Two-wheels

Two-wheelers continued their bullish run with motorcycle sales registering a 15.43 per cent growth from 727,542 units in the year ago period to 839,772 units this August.

The scooter segment grew by 24.84 per cent from a base of 170,414 in August 2010 to 212,750 units in August this year.

“The two-wheeler market in India has a huge base, particularly in tier-2 and tier-3 cities. It has, in fact, surpassed our growth projection of 12 per cent for the segment,” said Mr Mathur.

Owing to good monsoons and driven by growth in the light commercial vehicle segment, sales of commercial vehicles grew by 22.62 per cent to 64,248 units in August 2011, from 52,394 units in the year-ago period.

Sales of light commercial vehicles grew by 34.46 per cent to 36,847 in August this year from 27,402 units in the same period last year.

Growth in this segment was largely driven by goods carriers.

Total sales of vehicles across categories registered a growth of 11.85 per cent to 1,412,945 units in August from 1,263,239 units in the same month last year.

Meanwhile, exports were robust, recording a growth of 36.13 per cent from 189,578 units in August 2010 to 258,071 units this month.

Passenger car exports recorded a 35.24 per cent growth with 49,341 cars sold this month from 36,483 units in the year-ago period.




Spot rubber stays steady


KOTTAYAM, SEPT. 8:
Physical rubber prices finished unchanged on Thursday. The market was totally in a holiday mood with only a day left for Onam. Prices failed to react in tandem with the domestic or international futures lacking active market participants to set a definite trend. Sheet rubber closed steady at Rs 215 a kg both at Kottayam and Kochi, according to traders and the Rubber Board. Volumes were dull.

In the futures market, the September series closed at Rs 218.50 (218.52), October at Rs 214.60 (214.49), November at Rs 214.51 (214.11), December at Rs 216 (214.25), January at Rs 217.95 (216.40) and February at Rs 220 (218.62) a kg on the National Multi Commodity Exchange.

RSS 3 (spot) improved to Rs 218.34 (216.82) a kg at Bangkok. The September futures for the grade firmed up to ¥357.5 (Rs 213.89) from ¥353.5 a kg during the day session but then dropped to ¥355 (Rs 212.37) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 215 (215); RSS-5: 206 (206); ungraded: 200 (200); ISNR 20: 210 (210) and latex 60 per cent 133 (133).





Holiday mood grips rubber market


KOTTAYAM, SEPT. 6:
Spot rubber ruled steady on Tuesday. According to observers, the market was totally in a holiday mood prior to ‘Onam'. Almost a similar trend in the domestic futures market and the absence of quantity buyers on either side kept the sentiments neutral. Sheet rubber finished unchanged at Rs 214 a kg both at Kottayam and Kochi, according to traders and the Rubber Board. The transactions were low.

The September series closed at Rs 217.80 (217.29), October at Rs 213.20 (212.86), November at Rs 213.11 (213.40), December at Rs 213.25 (212.75), January at Rs 215.88 (217) and February at Rs 218.10 (217.40) a kg for RSS 4 on the National Multi Commodity Exchange.

RSS 3 (spot) declined to Rs 215.25 (217.20) a kg at Bangkok. The September futures weakened further to ¥347.2 (Rs 206.99) from ¥352 a kg during the day session but then bounced back to ¥354 (Rs 211.05) in the night session on the Tokyo Commodity Exchange.

Spot rates were (Rs/kg): RSS-4: 214 (214); RSS-5: 205 (205); ungraded: 199 (199); ISNR 20: 208.50 (208.50) and latex 60 per cent: 133 (133).