Overall industry growth increased by 2% in January 2013 due to positive performance of manufacturing and electricity sectors. Data released by CSO IIP index shown double digit growth compare to last year of the same month. For manufacturing sector, the growth rate is 2.7% in January 2013 as against 1.1% for Jan-2012. It is notable that this sector adds up to 75% of the index. Even though the manufacturing sector had shown double digits the automobile sector is still plagues and in recent times some OEMs had reduced their production rates.
Cumulative results are also positive except for mining sectot. Due to ban in mining, tipper sales had come down and as a result foreign players like Volvo, Scania, Actros etc. are badly affected. In the consumer durables segment, the decline was slow, while the non-durables segment saw a recovery. After contracting 8.1 per cent in December, consumer durables fell just 0.9 % in January, against a decline of 7.5% same period the previous year.
Overall economy has improved in Jan 2013. It was -0.5% in Dec 12, in Jan 2013 it turn around into 2.4%.
Manufacturing sector also shown drastic improvement month on month in Jan 2013. Power sector is performing better every month.
According to the report by the Ministry of Commerce and Industry, the inflation rate in India was recorded at 6.62 percent in January of 2013. Based on monthly WPI the annual rate of inflation stays at 6.62% for January of 2013 as against 7.18% for the previous month and 7.23% during the same month of the previous year. Build up inflation in the financial year so far was 5.09% compared to a buildup of 6.15% in the corresponding period of the previous year.
Effects on Commercial Vehicle Segment
Despite showing positive trend of IIP in FY Jan 2012-13, Commercial Vehicle sector (M&HCV) has shown drastic declined in production. Passenger carrier segment is less affected compare to goods carrier.
LCV segment did not show negative decline in production. This segment growth depend on several other market factors.
