In May, car sales in India rose 2.8%, the seventh month which saw an increase, but still below industry expectations.
The rising fuel prices, the high interest rates and the excise hike, all affected India’s car sales which have slumped over the last year. Car makers sold 163,229 units in May compared to 158,809 units in the same period last year. Sales of passenger cars were up 2.8%, two-wheeler sales jumped 11% and commercial vehicles increased with 9%, according to the Society of Indian Automobile Manufacturers (SIAM).
A total of 1,192,688 two-wheeler units were sold in May, compared to 1,070,603 units in 2011, truck & bus sales reached 62,025 units, compared to 56,841 in May 2011. Maruti Suzuki saw its sales fall 6% to 72,309 units, but Hyundai Motor India’s sales were up 3% to 31,939 units. Tata Motors saw sales up 6.7% at 17,371 units.
“The softening of interest rates, which was expected to happen has not materialised and continues to be high. Moreover, the high prices of petrol have also affected sales and the overall sentiment in the market is very negative,” said SIAM Director General Vishnu Mathur.