Amidst reports of slowing down sales numbers during the month of August, the Society of Indian Automobile Manufacturers (SIAM) said on Friday that it expects car sales in India to pick-up in the current month as a precursor to the festive season.
While speaking to the reporters at a press briefing in National Capital, Vishnu Mathur, director general, SIAM, said, "We do expect the markets to pick up somewhere around mid-September before the festive season begins."
The Indian automobile industry has been struggling with slowdown in sales since last few months caused by a cumulative effect of increasing fuel cost, rise in input costs and higher interest rates on auto loans. The buyer’s sentiments have been dampened by this sudden rise in buying and operating cost.
While further elaborating the current scenario of the Indian automobile industry, Mr. Mathur said, "The consumer sentiment is down right now, because of which the footfalls at the showroom are not being converted into purchases."
The month of August can be considered the worst month for the car makers in this year so far, as most of the leading car makers have registered disappointing sales figures including the top three Maruti Suzuki, Hyundai and Tata Motors. While Maruti’s sales slumped 12.7 percent during last month, Hyundai registered a moderate increase of mere 1 percent in its total sales, mostly due to a 10.5 percent rise in exports).
