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      Domestic car sales in negative zone for the first time in ten years: SIAM

      CarTrade Editorial Team

      CarTrade Editorial Team

      Society of Indian Automobile Manufacturers (SIAM), the apex industry body that represents 46 leading domestic vehicle and engine manufacturers, has announced that its growth forecast of 0 to 1 per cent will not be met in the ongoing fiscal. The announcement came on February 12, 2013 and SIAM has accounted unfavourable macroeconomic factors and prevalent negative sentiments towards investing in new vehicles, as one of major reasons behind the slowdown. Conclusively, it has come up with an approach that the annual domestic car sales are in a negative zone for the first time in last ten years.

      Expressing his opinion on the latest growth estimate, Vishnu Mathur, Director General, SIAM, was quoted as saying, “The way car sales are at the moment, we may not be able to meet the forecast of 0 - 1 per cent growth for the domestic passenger cars we made last month. It will be in the negative territory this year.” As per the report by SIAM, the total vehicle sales recorded in January suffered from a 12 per cent plunge, the third consecutive monthly drop in sales since November 2012.

      As per the latest figures announced by SIAM, the domestic passenger car sales in India dropped to 1,73,420 units in January 2013, a sharp decline as against 1,98,079 units sold in the same month last year. Flabbergasted by the sales, SIAM asked for an Indian Government intervention for cut in excise duties in the 2013 budget, along with special consideration for commercial vehicles according to the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

      Mathur further added, “In the April - January period this year, the domestic passenger car sales have declined 1.8 per cent to 15,56,283 units compared with the year-ago period. The overall economic situation is low and the consumer sentiments are deeply negative despite the recent notional rate cuts by the RBI.”