Festive season in India has begun! This is clearly indicated in the sales figures posted by various auto makers in India. Although, beginning of Navratra, 9 days of festivities, did not rev up car sales as expected but the over all sales figures for the month of September portray a promising outlook.
India’s passenger car segment showed a boost in the sales figures for the first time in past three months. Car sales had shown a decline in the month of July and August especially which had left the dealers and car maker in India, clearly worried about piling up inventories and increased carrying costs. However, things have started to look brighter as SIAM indicated that the sales to dealers rose to 2.8 percent to 108,823 from 105,822 last year.
According to Sugato Sen, Senior Director, SIAM, stated that sales in the interior regions of India were mainly hundred percent cash sales, contrary to urban sales which are mostly financed. These sales from the rural as well small towns of India supported the sales figures which have witnessed a decline in bigger cities due to ongoing economic crisis, rising inflation and escalating interest rates.
