Question : NEGATIVE GROWTH OF AUTO INDUSTRY



(a) whether the Auto Industry have posted negative growth in the last nine month of current financial year;

(b) if so, the details and reasons therefor; and

(c) the corrective steps taken by Government in this regard?

Answer given by the minister


MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (DR. VALLABHBHAI KATHIRIA)

(a)to (c): The automobile sector as a whole has shown production growth of 2.9% during April-December, 2000 over the same period of 1999. While Two wheelers, Three wheelers and Multi utility vehicles have recorded growth. Passenger cars and commercial vehicles have shown decline in production as per details given below:-

(Production in Nos.) 
Category April-December, 1999 April-December, 2000
Passenger Cars 422,080 358,785 Multi utility vehicles 84,925 88,231 Commercial vehicles 121,835 102,938 Three wheelers 155,554 170,432 Two wheelers 2,694,843 2,859,784
Total 3,479,237 3,580,170


The reasons for decline in production of cars and commercial vehicles are mainly attributed to demand constraint. The demand is expected to pick up as the economy grows.