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      Car Sales sunk in July

      CarTrade Editorial Team

      CarTrade Editorial Team

      Last year in July, domestic passenger cars showed a growth of 38%. However, for the first time in nearly 3 years, car sales have taken an all time low with just over 15% of growth in July this year. One of the reasons for this decline has been the RBI, which raised loan interest rates, leaving manufacturers and buyers helpless. Another reason that has been highlighted is that the preference for diesel cars in the Indian market has increased; where in the major share is occupied by the petrol variants.

      Diesel cars have not been launched on a large scale, but off-late all the companies are gearing up to bring in the diesel variant of already launched petrol variants. The shift from petrol to diesel variant cars is obvious owing to the continuous rise in price of petrol. Considering the survey done by Society of Indian Automobile Manufacturers (SIAM), domestic car sales in July 2011 were recorded at 133,747 units as compared to 158,767 units last year.

       

      Car Sales Sunk in July
       

      Although lack of diesel options has had an impact on car sales, the rise in price of diesel in June, left buyers and manufacturers in jeopardy. Models like Maruti Suzuki Wagon R and Tata Nano too have failed to attract customers this year despite their ambitious sales last year. The Maruti A-Star just managed to draw a mere 779 customers this year.

      Hyundai Verna Fluidic has replaced Honda City and Volkswagen Vento in popularity and was sold more than any other hatchback in July this year. The Honda City lagged behind because of its high-end price range. Therefore Honda has decided to slash its price in order to attract buyers. In conclusion, it has been a grim month for the Indian passenger cars. Though some companies survived this downfall, others are trying hard to sustain themselves in the market.