Automotive industry showing signs of slowdown

Chennai: A slowdown in the automotive industry is expected this year owing to increase in the prices of vehicles and fuel, among others, a top industrialist said on Monday.

"Commercial vehicle sales are likely to be impacted on account of increase in price of vehicles, diesel prices and higher interest rates," T T Srinivasaraghavan, Managing Director, Sundaram Finance Limited told reporters here.

Announcing Sundaram Finance`s annual report here, he said the company recorded a net profit of Rs 295.23 crore on March 31 this year as against Rs 226.74 crore registered last year.

The company`s net NPA as on March 31 stood at 0.20 per cent against 0.45 per cent last year.

Srinivasaraghavan said passenger cars and utility vehicle sector too are projecting to grow at a lower trajectory.

Noticeable components of Sundaram Finance`s business are commercial vehicles (52 per cent), car (33 per cent) and construction equipment (7 per cent).