Two of India’s largest auto makers have stated that due to inflation, their numbers have declined. Maruti Suzuki India Ltd. and Tata Motors Ltd are facing rising loan rate and increased prices are damaging their sales.

In India, Maruti sales have fell by 9% to 80, 298 vehicles in June from 88.091 of June last year. This is the biggest fall in sales since a 10% decline in December 2008. Deepak Jain, analysts with Sharekhan Ltd. is hoping that sales will increase during the next half of the year. It will make up 60% of the sales for the financial year. All types of vehicles are seeing a decrease in sales.

Tata SUVs fell a whopping 21% this June only selling 21,993 autos. The Tata Nana minicar which is considered to be the world’s most affordable car also had depleting sales and fell 29%, only sell 5,451 units.

Even though these two companies are suffering from low sales, Vineet Hetamasaria, VP Research, states that: “Maruti Suzuki is still a top buying pick given the auto major was hit by a strike in the previous month”.

Sandeep Wagle, Founder and MD, states that Tata has bounced back from even lower levels of sales. The two companies are not in any stress over their current sale situations and are hoping that sales will go back to normal in the next half of the financial year.