Car industry in India continues to bear the brunt of weakening economy as the past month registers negative growth, reports SIAM. Car makers in India were witnessing double digit growth in August last year which has turned to negative growth in the month of August this year. The only silver lining in the auto industry is the growth in two-wheeler segment which continues to promise healthy positive growth in sales from nearly all two-wheeler makers.
Rising inflation, increasing fuel costs, escalating car loans interest rates have constantly dissuaded the consumers from making any fresh purchases. Maruti Suzuki has managed to report a slight positive growth in July but now it has reported a 9.2 percent fall in its sales in August 2008. Nearly all the hatchback models comprising of Zen Estilo, Alto, Wagon R, Swift, from Maruti have witnessed a slump in their sales in the past month that dipped to a low of 9.75 percent. As M800 reflected a strong decline of 32.17 percent, its sedan series comprising of SX4, Swift DZire and Esteem showed 12% growth.
Hyundai Motor India showed a positive growth of 32 percent due to huge demand of its latest model i10 while exports clocked 89 percent growth. Tata Motors sales declined by 6% where Indica reported maximum individual decline of 32 percent. Sales of M&M reported 4 percent decline, General Motors 4.4 percent and Honda Siel Cars India sales dropped by 19.4%.
