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Car Sales Set To Slow Down First Time In 9 Years
High fuel costs and interest rates are expected to remain high forcing car buyers to postpone purchases. Car sales in February and March will decided if over all sales for the fiscal year will be better than the previous fiscal. SIAM has said there is a possibility of sales growth slowing down.
Car sales have declined by 1.19 per cent in the fist 10 months of the year. There has to be 12% increase in the next two months if sales for the fiscal year have to remain in the black. SIAM which had predicted a 16%-18% growth in this year down graded it to 10% to 12 % in the middle of last year and then brought it down to 0% to 2%.
The companies that have suffered the steepest drop in sales have been Maruti Suzuki, Hyundai Motors and Honda. While Maruti Suzuki saw a drop in production due to strikes, Hyundai's sales fell in some months due to the drop in demand for petrol cars. Honda also saw a decline due to the non availability of diesel cars in its line up. Further it also suffered a slump in production due to the short supply of parts from Thailand.
While Maruti Suzuki is expecting to end this year with a slight drop in sales, Hyundai has recovered and has recorded a 12% per cent increase in January sales. Toyota has been the biggest gainer in January after posting a 90% increase in sales.
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