Tata Motors, on Thursday, said the auto industry is going through a difficult year as ‘conscious intervention’ by the government slowed down demand of vehicles.

“The state of the market is a tough one for the industry, including Tata Motors. When the SIAM data (for September) is officially released you’ll notice that the growth is down to single digits,” Tata Motors President Passenger Vehicles Rajiv Dube told reporters here.

He said it has been a difficult year for almost all players, more so with government’s moves to curb demand. “There has been a conscious intervention by the government to slow down demand, especially in the auto and real estate segment,” he said.

The government has taken measures to cool down rapidly growing sectors to prevent overheating in the economy which is expanding at the second fastest pace worldwide. Central bank RBI has tightened monetary policy by increasing interest rates and other measures to curb excess liquidity in the financial system.

This has forced banks to raise interest rates on auto loans, leading to a fall in demand for cars and two-wheelers.

Dube said whatever growth the auto industry had witnessed in the fiscal was driven by new products.

Meanwhile, at a function in New Delhi, Tata Motors launched a new Safari DICOR 2.2 VTT range, powered by a new 2.2 L Direct Injection Common Rail (DICOR) engine.

This substantially raises the maximum power and torque ratings to 140 PS (at 3000 rpm) and 320 Nm (at 2200 rpm) respectively, claimed the company. 

The new Safari range starts from Rs 7.33 lakh (ex showroom-Delhi), with an enhanced warranty of 2 years or 75,000 km (whichever is earlier).