The Society of Indian Auto Manufacturers (SIAM) has cut its growth forecast for passenger car sales for the year due to lower demand in the country.
The demand in the auto sector has fallen due to higher cost of financing vehicles for the consumer and increasing cost of fuel. SIAM is expecting the car sales to grow at the rate of 9-11 per cent during the financial year 2013 compared to a forecast of 10-12 per cent earlier.
The industry body has also cut its forecast for commercial vehicles to 6-8 per cent from 9-11 per cent earlier. SIAM has not changed its two-wheelers sales growth forecast of 11-13 per cent for the year. Customers are increasingly looking to buy diesel vehicles in the country. Auto makers have increased production capacity of diesel by a third in the country due to a sudden increase in demand as the petrol prices increased in the country.
According to data released by SIAM, the domestic passenger car sales have increased 8.3 per cent to 1,55,763 units in July. Commercial vehicle sales increased 4.7 per cent to 64.926 units and two-wheeler sales rose 9.2 per cent to 11,69,733 lakh units during the month. Motorcycle sales rose 6.6 per cent at 8,79,713 units.