Car sales in India to fall for the first time in last one decade

Thursday 09 February 2012, 12:18 PM by Vikas Yogi

Despite registering record monthly sales in the month of January 2012, the Indian automobile industry is expected to witness a fall in this financial year, for the first time in last one decade. In the first 10 months of this financial year (April 2011 to January 2012), the passenger car sales dipped to 15.74 lakh units as compared to 15.93 lakh units sold in the same period last year, accounting for a fall of 1.19%. The sales figures were released by the Society of Indian Automobile Manufacturers (SIAM).

Speaking to the reporters on the matter on Wednesday, SIAM’s Director General Vishnu Mathur said, "If sales don't improve in the next two months, the Indian car market is likely to post its first drop since 2002-03." He added that the car sales need to grow at least 12% in the last two months to reach the decreased growth target of 2 percent.

It is to be mentioned here that SIAM has decreased its growth forecast for 3 times in last one year including from 16%-18% in April to 10%-12% in July and to 0%-2% in January.

Maruti Suzuki India Limited (MSIL), which accounts for over 40 percent car sales in the Indian auto market, is expecting a fall of 10 percent in its sales in financial year ending in March 2012.