A true festive month for automobile India - records 31 percent sales in December

Wednesday 12 January 2011, 00:00 AM by Vikas Yogi

The Indian automobile industry, which has been growing at its best pace ever since the starting of this year, has registered a sales growth of 30.51 per cent in the month of Dec 2010, as per data released by Society of Indian Automobile Manufacturers (SIAM). However, the industry body has indicated that rising interest rates and high commodity prices could slow down the growth in coming months.

The total sales of the industry across vehicle categories stood at 13,05,872 units during the month as compared to 10,00,562 units in the same month of 2009. The Indian auto industry has been growing at an average rate of 30 percent since the starting of this financial year.

While releasing the sales data, SIAM President Pawan Goenka said, “In the last three months interest rates have increased rapidly and is a cause for concern. We are seeing interest rates as high as 14.5 per cent on passenger vehicles and up to 18 per cent on commercial vehicles. There are indications that in the next six months it is going to increase and therefore it is a worry." He was speaking in a video conference from Mumbai.

According to data released by the SIAM, the total sales of the Indian automobile industry increased to 14.8 million units in year 2010 from 4.7 million units in year 2000.