The car sales in India in the passenger vehicles department have declined for the first time in the past eight months, joining China and Russia with utility cars and vans sales also going down for the two auto markets.
According to the Society of Indian Automobile Manufacturers (SIAM), the sales in June registered a 0.5% drop down to 217,642 cars sold in India, which stood for the first decline registered there since October. Moreover, utility vehicles sales went down 5.9% and the demand for vans also plunged 7.2%. Vikram Kirloskar, president of SIAM, explained that there is a lot of excess capacity in the factories across the board, meaning that a significant investment in capacity will take some time. A couple of months ago, SIAM’s General Director was stating that he was hoping for a moderate growth in the Indian car industry.
India has seen a recovery in its car sales up to March after witnessing its biggest decline in a decade over the previous year because of a slow economic growth and expensive bank loans not being chosen by potential customers. This past month’s decline in India is not the only decline in sales over the world’s emerging market as China has released its first decline in auto sales in over two years and Russia sales registered a massive fall of 30% in June.
In April, the domestic car sales in India stood at 1.876.017 units sold compared to 1.786.826 units in 2014, scoring a rise of 5% in the auto sales after two consecutive years of car sales declining.
By Gabriela Florea