|
The consumer durable industry started off on a strong note, with growth in production doubling to 36.96% in April 2010 from 17.60% growth in the April 2009. However, on sequential basis index has declined marginally by 2.79% to 568.4 in April 2010 over March 2010. The production index continues to post growth more than 30% for the six month in a row, and growth in April 2010 was the 3rd highest in the last 12 months after 45.91% in December 2009 and 38.05% in November 2009.
The segments like wrist watches, Automobiles, Tyres, Pressure cooker, Air Conditioners, Electrical fans and Alarm time pieces have drive the growth in the consumer durable production. In Automobile segment, for the month of April 2010 production of Passenger cars rose highest by 47.85% followed by scooter & mopeds by 45.20% and motor cycles 30.45%. The production of passenger cars in Ford India, Gen Motors India and Tata Motors companies have grown more than 203%, 209% and 146% in the month April 2010.
Production of Giant tyres registered marginal growth of 3.84%, where the growth decelerated from 49.61% in January 2010 to 3.84% in April 2010. Two wheeler tyres production for the month of April 2010 posted growth of 15.63% compared to 10.96% growth in April 2009.
The production of Window type air conditioners have increased sequentially by 39.6% in April 2010, and by impressive 45.38% from April 2009 levels respectively. In absolute terms, the production of window air conditioners for the month of April 2010 is 298387 units compared to 205243 units in April 2009 and 213769 units in March 2010. The heat wave was relatively higher in the current season propelling demand for air conditioners. Also, the increase in the average income of individuals and fall in the prices of air-conditioners strengthened the demand for air conditioners in 2010.
The prices of metals, including steel, aluminium, copper etc have come down sequentially in the past couple of months. Also, the demand in European region is weak, forcing global players to dump consumer durables at relatively cheaper costs. So, players importing consumer durables in completely knocked down (CKD) and semi knocked down (SKD) should benefit from fall in sluggish global demand and fall in prices.
Part of benefit of fall in metal prices was taken away by depreciation of rupee against US dollar in the quarter ending June 2010. Indian Rupee has depreciated by 3.2% against US$, by 3.0% against Great British Pounds and by whopping 8.6% against Japanese Yen. But it has appreciated by 6.0% against Euro. Strong growth in industrial production, better rural income, thanks to estimate of normal South West Monsoons, and favourable demographics together can propel the pace of growth in consumer durables.
|