Even as PMI nos drifted to a 20-year low in June, SIAM is ready for a downward forecast as RBI rate hikes scare manufacurers into pre-emptive action to manage inventories. The retail consumption is not ready to slow down that much though year on year Auto sales are nearly down 20% for Maruti Suzuki. Maruti still managed to increase Sales month on month from 66000 units to 75000 units in July 2011, despite 11000 lower Swift sales from a limited rollout of the new model and 6000 lower sales of Dzire attribued to shifting of production plans to the old plant in Gurgaon. 

Based on reports from TVS, it seems likely that Hero and Bajaj will report higher sales in July as well as consmption remains strong in high volume categories. Based on 20% growth in 2 & 3 wheelers, the market is nto all tha t bad even as interest rates have already risen by 300% in retail and the new increases will also be passed on 3 year and longer tenure loans

June Exports for India grew nearly 50% to $29.2 bln beyond targeted growth to $300 bln for the year, Oil imports of $10 oodd bln though caused the deficit to rise just imperceptibly to $7.66 bln on $36.87 bln in imports

Ford and VW have been growing on new models in he global car companies and Hyundai fairly stable at 50000 units in the same month last year. Still4 wheeler sales for the country will not cross 150,000 for July

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