News: Indian automaker Maruti Suzuki could launch a CNG version of its Stingray model, CarWale reports, in an attempt to improve sales as fuel prices increase in India. However, owing to the sluggish nature of the Indian auto market, the Stingray CNG may struggle as it is likely price (from US$6,613) is close to bigger hatchbacks.
BMI View: Despite the current gloom, we remain bullish on Indian auto sales going into FY2013/14. With Indian companies having run down their inventory in the past few months, there has already been an uptick in investment spending recently as inventories are rebuilt. Even though we do not expect further monetary easing measures from the central bank for the rest of the year, the recent rate cuts since the beginning of 2013, will provide a nice tailwind for passenger car sales in the coming months with consumer loan credit becoming more readily available. Also, if inflation falls further, consumer sentiment will improve as well.