After a strong growth of 30% for two consecutive years, the segment of passenger vehicles is being forecasted to meet a fall this year. The reasons of the fall in the growth are the increase in the rates of loan, fuel and even the vehicles.

The automobile company SIAM (Society of Indian Auto Manufacturers) witnessed a fall in the sales of its vehicles from 12-15% to11-13%. On the other hand, the sales of the other cars and two-wheelers will remain unaffected.

As per RC Bhargava, Chairman of Maruti Suzuki, “We are all hoping that with the coming festival season, there will be a pickup in demand and things will become better”. He further stated that an increase by 8% in this segment will be a dream comes true for the companies.

So far, sales of Maruti Suzuki cars like Swift, Estilo and Ritz have made a drastic fall by 27% and the small segment cars like Maruti-800, Alto, A-Star and Wagon R had dropped by 18.3% in the month of August.

Various car makers and retailers predict that with the approaching festivals in India, the sales growth in the automobile sector is likely to happen.