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

Mihir S Sharma

Mihir S Sharma: Chetan Bhagat, national treasure
Mihir S Sharma

Early on in the book, when the protagonist of Chetan Bhagat's Two States meets his future wife, she asks him what he wants to be. A writer, he ...

Shankar Sharma

Shankar Sharma: Corruption is a non-issue for the voter
Shankar Sharma

Nor do secularism, freedoms and fundamental rights play such a major role in their electoral choices

Bharat Bhushan

Bharat Bhushan: Why Modi's selfie campaign is not picture-perfect
Bharat Bhushan

The consequences of Modi's campaign can prove to be negative and his political 'dysmorphic disorder' is bound to come in the way of delivering good governance

Columnists

Claude Smadja

Claude Smadja: Trying the 'pivot', again
Claude Smadja

On his trip to Asia, Barack Obama will have to counter the impression that the US is an increasingly reluctant superpower

T S Vishwanath

T S Vishwanath: EU seeks to bridge the skill gap
T S Vishwanath

A new directive on intra-corporate transfers of skilled professionals seeks to address a key demographic challenge in a progressive manner

Kanika Datta

Kanika Datta: The Big Two
Kanika Datta

If elite press and social media are to be believed, current parliamentary election is being fought on twin issues of corruption and communalism

Back to Top