The Indian auto sector, with atota1 market capitalization of Rs 4,623,304 crore wasn’t. pinning high hopes on the Budget, although it has been undergoing rough times because of eces inventories, high interest rates and poor demand. So while the passenger vehicle (PV) sales (65 per cent of the PV market is dominated by Maruti Suzuki), rose by a minimal L6per cent between April and May2009 from the same period last year Sales of utility vehicles (UVs) dropped by 15 percent and those of multi-utility vehicles (40 percent of M&M’s vehicles fall In this category) advanced 24 percent between April and Ma 2009, The worst-hit w commercial vhtoles, eumulativa sales of which shrank by ia per cent between April and May from the same period year ago. The one bright spot was the two-wheeler segment, in particular Hero Honda, which dervenear1 60 per cent of its revenues from rural sales. Indeed, if we have a good monsoon the two big rural beneficiaries will be Hero Honda and M&M, which dominates the tractor market as efl, M&M launches (Xylo and the new Scorpio) have managed to eke out sales even in the downturn. Maruti Suzuki’s launches have also helped post a decent 6ciIperfbrmanee. Rs 5,000 reduction on large car engines and UVs With a capacity of 2,000cc will help improve M&M’s performance. OF course, everyone will be watching for signs of an economic revival with an eagle eye1 In particular the CV segment. For now wait and watch. After a dismal performance in the last fiscal sales are expected to see a gradual comeback
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