What are the indicators of economy slowdown in India?

[msn1270]

As per today's news, all major car manufacturers in India are expanding their production capacity to meet their projected market need. In this stiff competition market, Company are making huge investments means......(if at all there is a slowdown). Read the attached file.

[tvsh]

The capacity utillization is 60-65% now and one of the lowest in the last five years. The capacity addition takes some time to come online. So these cars are not for the current year. The capacity addition is for long term planning with a hope that the growth will eventually pickup. More over, India is competitive in the manufacture of small cars, and these multi-nationals can export the surplus cars if a need arise as they operate all over the world.

The article says :
=============
FEAR OF GLUT
Industry experts, however, warn about huge idle
capacity once the planned expansions go on stream
if the market remains gloomy following a meagre
2% growth in FY12 and a drop last year.
With installed capacity of close to 5 million units,
the Indian passenger vehicle market currently operates
at 60-65% of capacity, one of the lowest levels
in the last five years.

Sandeep Singh, deputy managing director and
chief operating officer, marketing and commercial,
at Toyota Kirloskar Motor, says short-term issues
such as current market condition, demand and interest
rates are important in decision-making, but
they cannot be the deciding factors for long-term
planning. “Sluggish market is certainly affecting
sales and profitability. It will continue to be so in the
coming months. However, this is just a temporary
phase,” he says.

[msn1270]

Of course their plan is not for immediate production. In this domain, Each production line is tailor made for specific models. Hence, long term means not beyond 2014 to 2015, as the present models itself will not be there beyond that time or the company strategy or position or market share might change. So No company plan in advance for the next 10 years ahead or so.

[msn1270]

May 2013 Car Sales data is out. Major car makers overall domestic sales is nearly stable. There is a major decline in their export quantity. Individual Companies are performing differently. Inspite of Duty hike in the budget, over all domestic market looks stable(Nearly 1.75 lakhs sold in a month).

1) Maruti: 66,342 vs 72,309 (May 2012) - 8.3% decline

2) Hyundai: 32,102 vs 32010 - 0.3 % Increase

3) General Motors: 8,500 vs 6,079 - 39.82% Increase

4) Honda India: 11342 vs 10,334 - 34% Increase

5) Tata Motors: 11,134 vs 20,503 - 45.7% Decline.

6) Toyota: 10,023 vs 15,501- 35.33% decline

7) Renault: 6,013 vs 438 - 1300 % Increase

8) Mahindra: 42,104 vs 39,938 - 5.4% increase

9) Ford India: 4002 vs 6,036 - 33.69% decrease