Car sales drop in September; SIAM further cuts projections
The slowdown in auto sales has forced industry body SIAM to further reduce its projections for the fiscal year.
October 10, 2011 / 05:35 PM IST
The slowdown in the auto world is getting clearer by the day. Industry body Society of Indian Automobile Manufacturers (SIAM) has said that car sales fell 1.8% in the month of September, as rising interest rates and vehicle costs hurt demand.
Sales of trucks and buses, a key pointer to the country's economic activity, rose 18.05% to 70,634 units. However, car sales for the first half of the fiscal year have fallen 1.36% year on year.
This slowdown in sales has forced industry body SIAM to further reduce its projections for the fiscal year. Keep in mind that we first saw this contraction in auto sales in July. SIAM now expects passenger cars to clock just a 4-6% growth this year, as against its earlier projection of 10-12% growth.
However, SIAM expects the industry as a whole to grow between 11-14%, with commercial vehicles and two-wheelers growing at a healthy rate of 13-15% this year.