Automobile industry registered biggest decline in vehicle sale in eight years. Vehicle sale declined 14.42% in October with selling of 8.65 lakh units as compared to 10.11 lakh in the same period last year. Companies were optimistic to revive the growth of industry in the festival season but all these hopes ended in smoke with unexpected decline in auto sale.

Global slowdown, liquidity problem and high financing cost, severely impacted the automobile and commercial vehicle sector. Car purchase also declined following high finance rates by dealers.

Car sale witnessed decline of 6.59% in October with sale of 98,900 cars against 1.05 lakh in the same month last year. Cumulative growth in the current fiscal declined to 5.64% for the April-October period from 10.07% growth in the April-September period as per data released by Society of Indian Automobile Manufacturers (SIAM). Truck and bus sale also declined in the festival season. However, scoter and passenger three-wheelers posted positive growth.

Maruti Suzuki India sold 52,153 vehicles with 6.4 per cent decline in sale. Sales of TATA Motors also declined 6 per cent in October with sale of 17,014 units. However, sale of Hyundai Motor India increased 9.91% to 20,001 vehicles in October against 18,197 as compared to same period last year.