Car sales in India dip steeply during May12

Tuesday 12 June 2012, 11:35 AM by

Amidst high petrol prices and upward shooting interest rates, the Indian car industry registered the slowest sales in last seven months during May’12. The total sales in the domestic market stood at 1,63,229 units during his month as compared to 1,58,809 units sold in the same month last year.

Speaking on the matter, Mr. Vishnu Mathur, director general at SIAM (Society of Indian Automobile Manufacturers), said, "This is the slowest growth since October last year when car sales witnessed a 24% decline." He added that the demand forpassenger cars may move into negative territory because the overall market sentiment is very negative. Moreover, the increased in petrol prices have also affected sales last month.

With car sales figures dipping steeply in the month of May’12, the targeted growth of 10-12% in the financial year 2012-13 is expected to be revised to a single digit figure. In the month of April’12, the overall car sales of in the country stood at 1,68,351 units, about 3.4 percent higher as compared to the figures of the same month previous year.