Car sales growth lowest in last seven months
According to Society of Indian Automobile Manufacturers (SIAM), the nodal body that has released the data, high fuel and interest costs coupled with slowdown in the economy has dampened car buyers' sentiments.
"There are many factors that have affected car sales like high fuel cost, high interest rates, excise duty hike and an overall slowdown in the economy," Vishnu Mathur, director general, SIAM, told IANS. "Customers who want to move from a two-wheeler to four-wheelers have deferred their plans. So have many other customers who want to buy a bigger car."
Not for just petrol powered cars, demand for the diesel vehicles has also slowed down due to the downturn in the economy. "In general, demand for diesel cars has also slowed down, even in the premium segment. Increase in excise duty of diesel cars will hit the industry hard."
Other segments like commercial vehicles' sales in the month under review increased by 9.12 percent at 62,025 units from 56,841 units sold in May 2011.