According to the latest figures released, the total car sales in India has fallen by a disappointing 19 per cent during the month of august, which is its highest fall in 10 months.
The high fuel prices and increased cost of financing vehicles continues to threaten the auto industry in the country as buyers shied away from making purchases. The sales were also affected by lower output at the local unit of Maruti Suzuki Motor Corp, due t the recent violent protests at the site.
The total sales fell 19 per cent to 118,142 cars in August compared to 145,066 units sold in the same month of the previous year. Data issued on Monday by the Society of Indian Automobile Manufacturers said that the fall in sales is sharpest since 24 per cent drop in October of 2011.
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.
Sugato Sen, senior director at SIAM said, “We are entering the desperate zone. We thought with the onset of the festive season, the dealers will start ordering and building inventory, but we are facing a totally different situation.”
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