According to figures from the Society of Indian Automobile Manufacturers (SIAM), the Indian auto market is poised to drop for a second consecutive year, as January’s figures showed a 7.6 % drop, for the fourth straight month of negative results.
SIAM announced that consumers restrained from purchases because of high interest rates and increased fuel costs due to the slowing overall economy. Car sales reached 160,289 vehicles in January.
“There is no respite,” said Sugato Sen, SIAM’s deputy director general.
The overall sales of just the passenger vehicles, including cars and utility vehicles, actually fell 9.3 % in January, as an increase in factory gate duties and rising prices of diesel hurt last year’s bright spot, the utility vehicles.
India Ratings & Research, a unit of Fitch Group, disclosed in a recent note it forecasts a continuing volume decline for the fiscal year that starts in April for the passenger and commercial vehicles, although from September the growth rate might still turn positive.
Automakers, which unveiled a host of new models at the ongoing New Delhi auto show, combining with pent up demand triggered by the general election due in May, might turn the tide and allow for a sales boost in the latter part of 2014.