The Indian auto industry has registered its slowest growth in car sales in the period of last two years. Car sales surged a mere 13.2 percent during the month of April 2011 versus April 2010. The factors that contributed to the slowing down of car sales include higher vehicle costs, higher interest rates and high fuel costs. In the month of April, the Indian auto makers managed to sell a total of 162,825 cars as compared to 143,862 vehicles sold in the country in April 2010.
According to a recent statement given by Mr. Sugato Sen, the senior director at Society of Indian Automobile Manufacturers (SIAM), "We are anticipating that there will be some postponement of purchases because of interest rates, high prices." Mr. Sen added that overall consumer sentiment is still high, and the industry body is not sure how long that will remain buoyant.
In past few months, a number of auto biggies have hiked the price of their respective cars in the Indian market, blaming the continuously rising cost of input materials for the decision.
As per SIAM forecasts, the auto sales growth in the country is expected to remain moderate in the range of 12 to 15 percent as compared to the 30 percent growth registered in the last financial year.
