With the increase in rate of interest on car loans and with hike in the prices of the fuel, the Indian market witnesses a major fall in the car sales. The loss is believed to be the highest fall in the past three years.

The auto mobile companies of India are expecting that the sales figures will overcome the downfall in the month of August, and with the launch of new cars and recommencement of cars production at the unit of Maruti Suzuki India Ltd, things would get even better.

The domestic car sale declined by 16% in the previous month with 133,747 cars, which was recorded at 158,767 units previous year, reveals a statistical report by the Society of Indian Automobile Manufacturers. The fall is claimed to be the highest drop since November 2008, when the car sales were recorded at an increase of 19%.

The increase in the interest rates from 7.50% to 8% by the Reserve Bank of India in the previous month affected the sales majorly. As per Siam Director-General, Vishnu Mathur, "Hopefully, interest rates have reached their peak... If crude continues to soften, then there may be some positive impact as it will lead to inflation coming down". He further added that the approaching season of festivals in India may improve the figures in sale of cars.