We have revised up or 2013 vehicle sales growth forecast from 3.8% year-on-year (y-o-y) to 9% y-o-y after a better than expected sales in the first half of 2013. The Union of Automotive Industry Representatives (URAI) estimates that new vehicle sales grew by 9% y-o-y, 3,062 units, in H113. While part of this is owing to favourable base effects after nearly a 10% y-o-y decline in sales in 2012, the URAI attributes the growth to the resurgence in public and private sector activity in 2013, which clearly translated into increased vehicle demand. We believe demand could have also been bolstered …
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