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economy
FRIDAY, DECEMBER 23,2011
Mumbai Weekly
A man walks past old cars at a scrap-yard in Mumbai on 23 December 2011. Sathya Keerthi/Mumbai Weekly
Indian Auto Industry back in first gear
Unlike US car makers, the Indian auto industry will hope that the new year does not begin the way the present one is ending. With a drastic fall in sales, 2011 is set to become one of the worst years for the Indian auto industry in a decade. According to an In-
dian Television channel, 2011 witnessed one of the steepest fall in car sales in the last eleven years. High interest rates, labour disputes and production problems played spoilsport, to an otherwise encouraging start to a year in car sales, that more than fizzled-out by
A model stands next to an Audi Q7 during its launch in Mumbai.. Krishanu Nagar / Mumbai Weekly
the year end. Fluctuating oil prices, depreciating rupee and environmental disasters added to the woe of car manufacturers.
Auto trade website Car Trade India reported that The dismal performance the tsunami that hit Japan resulted in an expected seriously damaged plants fall in stocks of several
the lowest food inflation since February 2008. The inflation was in double digits last month. This sharp fall has been led by a more than 20% decline in the price of vegetables, like onions, potatoes and toma-
toes. Prices of wheat also considerably came down. Experts say that the decline in inflation is on account of a normal monsoon and a good harvest. With the inflation number becoming more manageable, Indian economists predict a
Indian auto makers such as, Ashok Leyland, Mahindra & Mahindra , Tata Motors and Maruti Suzuki India. While the situation is gloomy, it definitely is not out of control for the Indian auto industry, with even
the stocks rebounding for some of the companies. Indian car makers hope that 2012 will be a better year , unlike the dismal year, 2011 has proven to be.
A man walks past an old-car at a scrap yard in Mumbai on 23 December 2011. Sathya Keerthi/Mumbai Weekly
India’s food inflation at fouryear low of 1.8% Amidst all the economic gloom, finally there is something to cheer. India’s food inflation has fallen to a four-year low of 1.8% according the country’s latest Wholesale Price Index data, released by the Indian government. This is
of several car makers including Maruti Suzuki, Toyota and Honda. Maruti Suzuki, particularly suffered more, with labour problems in one of its plant.
cut in interest rates by India’s apex bank, the Reserve Bank of India. Buoyed by the numbers, the Indian Finance Minister , Pranab Mukherjee said that the economic will be good, according to an Indian media report.
(Left) A shopkeeper reads his newspaper in his vegetable shop in Mumbai on 23 December 2011 Pratham Ghokale / Mumbai Weekly
People walk in a vegetable market in Mumbai on 23 December 2011. Pratham Ghokale / Mumbai Weekly