Though the Society of Indian Automobile Manufacturers (SIAM) anticipates a revival of the industry this fiscal and accelerated growth in 2010, automobile manufacturers are apprehensive about the same.

According to Pawan Goenka, the President of the automotive unit of Mahindra & Mahindra, the industrial revival projections by SIAM are based on the combined opinion of its research team as well as the manufacturers. Goenka opined that the growth projections will not be met, with uncertainty looming large; and possible changes - including rise in commodity prices and sharp swings in excise duty among others - in the face of the ongoing economic crisis.

An opinion similar to Goenka’s has also been expressed by Arvind Saxena - Hyundai India Motors’ Senior VP of sales and marketing; and P Balendran – VP, General Motors. While Saxena said that sales growth is a faint, distant possibility this fiscal, and the company would be happy with figures similar to last year’s; Balendran said that the present trends hint at a flat or even negative growth for 2009-10.

Nonetheless, SIAM says that its projections for industrial growth result from the expected demand from five small-car launches. In addition, SIAM Director-General Dilip Chenoy said: “The upcoming repossession guidelines from the Reserve Bank of India and falling interest rates will greatly help achieve these projected numbers.”