It was revealed by the apex industry that the revenue growth of the auto ancillary industry would reduce to half in the coming year. They say this would be a result of the plunge in the sales of domestic vehicles. There is growth of 12-15% expected in the auto-parts industry in the current financial year.

This is far below the 33% mark that was touched in the previous year. This was when there was a rise in auto sales due to rise in revenue to USD 39.9 billion.

"Domestic economy has slowed down... secondly we are working with a higher base so expect lower growth", said Srivasta Ram, from the Automotive Components Manufacturers Association.

The car sales have also been affected due to the high inflation rates in India, which has made credits costlier.

This also resulted in fall of sales of cars in the nation. The levels have crossed expectations, now being 30%. There was a rise recorded in the economic growth of the nation by 7.7% in the quarter since June. High inflation rates have been bogging down the growth and development of the nation since a long time and something needs to be done about it soon.