Monday 21 April 2014
News updated at 11:55 PM IST
Weather
Max: 35°C
Min : 22°C
In Bangalore
Partially cloudy

Domestic car sales down 4.7%, says SIAM

Mumbai, Oct 8, 2013, DHNS

Car sales in the country have declined by 4.7 per cent during April-September, which is the sharpest decline in half-year sales since 2002-2003, as per the latest data released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday.

Even as cars posted a marginal 0.7 per cent growth in sales in September, when 156,018 units were sold in India, the Indian auto industry is facing a second consecutive year of decline largely impacted by rising fuel prices and high interest rates that forced consumer to delay fresh spending in a slowing economy.

While rupee movement has seen correction, the concerns of high interest rates still persist, said SIAM. According to SIAM President Vikram Kirloskar, “Interest rates are still very high in the country, but the rupee movement seems to have stabilize now. We are not seeing any encouraging signs on the economy side and I'll be thrilled if the auto industry is flat or a little bit positive.”


Domestic car sales continued to decline for the past nine months with a minor uptick in August on the back of some good performance by segment leader Maruti Suzuki. The sluggish sentiments has taken its toll not just on the vehicle manufacturers, but the entire industry, including component manufacturers, financers and dealers, as the tapering demand is affecting jobs in the market.

The Indian auto industry is however expecting some recovery in demand on the back of a strong monsoon which have supplemented farm incomes as well as some excitement from new car launches like Ford EcoSport, Hyundai Grand i10 and Honda Amaze that are seeing some strong sales. The sales of motorcycles that rose 17.4 per cent in September to 8.85 lakh units proved to be a silver lining for the struggling auto industry.

Go to Top

Photo Gallery
People purchasing mangoes at Russel Market Bangalore. DH photo

People purchasing mangoes at Russel Market Bangalore. DH photo

Members of the Christian community praying on the occassion of Easter Sunday at the Sacred Heart...

Members of the Christian community praying on the occassion of Easter Sunday at the Sacred Heart...

Pope Francis leaves after celebrating an Easter Sunday Mass in St. Peter's Square at the Vatican...

Pope Francis leaves after celebrating an Easter Sunday Mass in St. Peter's Square at the Vatican...

Children holding Easter Egg during the prayer at 'Platt Memorial' Church in Bangalore on Sunday...

Children holding Easter Egg during the prayer at 'Platt Memorial' Church in Bangalore on Sunday...

Christians offer prayers on easter day, at St Mary's Cathedral, in Bangalore. DH photo

Christians offer prayers on easter day, at St Mary's Cathedral, in Bangalore. DH photo

A man waits for customers while selling 'samosas',  along a road divider in Karachi. Reuters photo

A man waits for customers while selling 'samosas', along a road divider in Karachi. Reuters photo

A man pours water on a competitor during a road race as part of traditional festival games to ...

A man pours water on a competitor during a road race as part of traditional festival games to ...

A man baths using a pipe that supplies water to trains at a railway station in the southern...

A man baths using a pipe that supplies water to trains at a railway station in the southern...

A butterfly and a honey bee fight to collect nectar from a flower in New Delhi on Sunday. PTI Photo

A butterfly and a honey bee fight to collect nectar from a flower in New Delhi on Sunday. PTI Photo

A man and his bullock cart crashes with a truck at a race during traditional festival games to ...

A man and his bullock cart crashes with a truck at a race during traditional festival games to ...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523