According to the Society of Indian Automobile Manufacturers, auto sales in India for 2012 are expected to reach the lowest level in nine years.
SIAM reported that auto sales in India during the April-December 2012 period reached 1, 697,625 vehicles, up 1.19% compared with 1,677,588 vehicles sold during the same period in 2011. Although the auto market saw an increase during this period, the reports for the entire year are expected to be the lowest in the past nine years.
Officials believe that the slowdown was caused by three main factors: the increasing interest rates, the rising fuel costs and the slumping GDP growth. Due to the sluggish sales, SIAM will reduce its growth forecast for 2012-2013 by 1%, the third revision to be done for this financial year and a dramatic decrease from the initial target of 10-12%.
According to recorded data passenger car sales have dropped 0.33%, utility vehicle sales increased 5.9%, van sales rose 3.71%, medium and heavy commercial vehicles dropped 19.13%, light commercial vehicles were up 15.6%, three wheeler sales rose 4.96%, passenger carriers rose 8.96%, goods carriers dropped 10.29%, scoters increased 18.44%, mopeds were up 1.80% and motorcycles also increased 0.77%.