Auto sales have dipped by 1.71 percent in July year to year. The three year long growth trend has suddenly slumped into the negative sector as auto makers marked sales of 87,724 cars in July 2008 as compared to 89,250 cars in July 2007. Credit crunch across the world market clubbed with high interest rates has finally started taking its toll on the car industry in India. Last, it had posted negative growth in November 2005 but since then things had been on fast track growth for the car makers in India.
According to SIAM, Society of Indian Automobile Manufacturers, the auto industry in India is reeling under high fuel prices and increased car loan interest rates. It also fears that the current trend may hamper industry's target of tripling the annual sales to 3 million vehicles by 2016.
As many as 13 major car makers in India have reported negative growth in July 2008. Tata Motors, third largest automaker in India, was one of the major losers that reported 8.9 percent decline in sales while Honda Siel Motors, which stands as fourth largest car maker in India, reported 7 percent fall to 4006 units in July. However, Maruti Suzuki, India's largest car maker report 0.1 percent growth and Hyundai, the second largest car maker, reported 0.5 percent growth trend.
