The passenger car sales in the Indian market saw a steep slowdown in the month of April 2012 with growing at mere 3.4 percent during this month. The slowdown in sales was cumulatively affect by a number of factors including high fuel prices, high interest rates, an increase in excise duty and continuously rising input material costs.
As per a data released by the Society of Indian Manufacturers Association (SIAM), the total domestic car sales stood at 1,68,351 units in April 2012, as compared to 2,29,866 units in the preceding month. The entry level car segment, which accounts for a major portion of the total car market, grew by just 0.7% during this month.
However, the new car launches during this month kept the growth figures positive with passenger utility vehicle segment growing 47.3% at 39,008 units, thanks to the launch of Maruti Ertiga last month.
Speaking on the growth scenario of the Indian car market, Hyundai India’s director-sales and marketing, Mr. Arvind Saxena, said, "There was an advancement of purchases to March because of the fear of an excise duty increase - the key reason behind subdued demand in April.” He added that "There are no major drivers to boost sales at this point in time. If anything the increase in state taxes have only dented the buying sentiment. I don't see any positive trigger in coming months that could drive demand.”
