New Document top_band
 
Business Standard

StatsGuru: 30-July-2012

Related News

The sharp drop in profits, 23 per cent, for Limited (MSIL) in the first quarter of 2012-13 — combined with the lockout at its Manesar plant — has focused attention on India’s auto sector. Is it struggling? As Table 1 shows, it has seen something of a slight slowdown since March this year — mainly reflecting weakness in the domestic market since exports are still a small proportion of its output. However, as Table 2 shows, some segments are doing worse than others. Demand for motorcycles is still robust, while that for passenger cars has declined sharply. Commercial vehicles have also seen a sharp drop-off, suggesting broader problems for the economy ahead.

are still doing well, therefore, as Table 3 shows, with margins steady. Matters are more chaotic for the car and truck-makers, shown in Table 4 — though Mahindra & Mahindra and outperformed MSIL on margins even before the latest results. However, MSIL’s share price has done relatively well this year, as Table 5 shows. Eicher’s steady margins have accompanied a sustained increase in its share price this year.

The component industry is more globalised, perhaps, than the rest of the auto industry. However, exports as a percentage of turnover took a sharp dip following the financial crisis, as Table 6 shows, from which it is yet to recover. The same table lays out what industry bodies expect — that the components industry will grow sharply in years to come on the back of increased exports.(Clcik here for tables)

However, given that its largest export destination continues to be troubled Europe, the sector will require speedy reorientation if it is to grow as its manufacturers hope.

Read more on:   
|
|
|
|

Read More

Nilanjana S Roy: Readability, or lasting value?

The strongest argument in favour of reading the best, most well-crafted, most challenging books you could find was made by the late Dom Moraes. We ...

Most Popular Columnists

A K Bhattacharya

A K Bhattacharya: Making haste slowly
A K Bhattacharya

In India, any major policy change can take at least seven to 10 years

Sunita Narain

Sunita Narain: How smart is a smart city?
Sunita Narain

The government's proposal to build 100 "smart" cities will work only if it can reinvent the very idea of urban growth in a country such as India

Subir Gokarn

Subir Gokarn: Explaining expectations
Subir Gokarn

Figuring out why inflationary expectations have been so stubborn is critical for policy

Advertisement

Columnists

Arvind Subramanian

Arvind Subramanian: A solution for the WTO
Arvind Subramanian

India is right to support its agriculture, but is going about it the wrong way

M J Antony

M J Antony: Tribunals in the doldrums
M J Antony

The Supreme Court will decide their legal status in two months

Bharat Bhushan

Bharat Bhushan: Ambient intolerance goes up
Bharat Bhushan

With the temperature of Hindutva rising in the Indian social discourse, Narendra Modi is yet to become the inclusive leader that the high office ...

Back to Top