Recession Might Trigger Further Drop In Car Sales

Published: Wednesday, August 10, 2011, 16:45 [IST]

The Society of Indian Automobile Manufacturers (SIAM) has revealed the total car and sales figures for the month of July. As expected car sales have dipped considerably while bike sales continue to grow. As per the SIAM"s report, car sales have dropped by 15.76 per cent to 1,33,747 units in July. 1,58,767 cars were sold in July 2010.

Two wheeler sales continued to grow despite increased fuel and bank interest rates in July. Sales increased by 12.61 per cent to 10,56,906 units last month from the previous July"s sales of 9,38,514 units. Motorcycle sales registered an increase of 10.51 per cent to 7,85,278 units from the 7,10,621 units sold in the corresponding period last year.

Commercial vehicle sales which are an indicator of the economy"s performance also saw a boost. After sales of 64,241 units in July, commercial vehicle sales registered a 23.7 per cent hike.

SIAM added total vehicle sales in India during the month of July stood at 13,48,753 units marking a growth of 8.99 per cent. Although this growth is a positive development, this is comparatively very low considering the sales growth seen during last year.

Carmakers are bracing themselves for another sales dip. Although there has been no official word from any carmaker about their sales being affected by the recent economic crisis in the US. While the IT industry being expected to suffer the bulk of the impact, car sales might see a fall again. The recent price reductions and discount offers can be considered as move by carmakers to maintain sales.

Article Published On: Wednesday, August 10, 2011, 13:13 [IST]

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