India’s car sales show biggest fall in three years
According to data released by Society of Indian Automobile Manufacturers (SIAM) car sales fell 16% last month, registering 133,747 units compared to 158,767 for the same period in 2010.
Vishnu Mathur, director general of SIAM, said: ‘People want cars, they want mobility, but they may be postponing their purchases, hoping interest rates will go down.’
Prior to this, the largest decline in monthly sales was seen in November 2008, with a fall of 19% compared to November 2007.
Earlier this month, Maruti Suzuki reported a 25.3% year-on-year drop in vehicle sales in July while Tata Motors saw sales drop 6%.
Mathur added: ‘If crude continues to soften, then there may be some positive impact, as it will lead to inflation coming down. The forthcoming festive season is also likely to help car makers push sales, but to what extent it can boost growth has to be looked at.’