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High fuel prices, costlier loans to weigh down car sales growth: SIAM
Posted on 11 Jul 20121,583 Views Comments
Car sales in India will grow at a slower pace than previously forecast as higher fuel costs and costlier loans deter buyers: Society of Indian Automobile Manufacturers
Car sales in India will grow at a slower pace than previously forecast as higher fuel costs and costlier loans deter buyers in Asia's third-largest economy, the Society of Indian Automobile Manufacturers (Siam) said on Tuesday.
The lobby group said it expects car sales to rise 9-11 per cent in 2012-13, against a 10-12 per cent growth it had forecast three months ago.
Siam, however, said it expects demand to revive later in the year.
"We are moderate on our forecast even as we expect demand to revive in the later part of the year," Siam president S Sandilya said. "Fuel prices have come down moderately, interest rates are not going up, government is under tremendous pressure to come up with reforms. All this should kindle demand in the coming months."
SIAM said car sales in the country grew 8.28 per cent to 1,55,763 units in June, the lowest monthly sales volume since October 2001 when 1,38,095 cars were sold. The Indian car market grew 5.22 per cent to 4,90,000 units in the first three months of 2012-13, achieving the halfway mark of Siam's earlier forecast.
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