Indian Car Sales Slows Down To 2.19% in 2011

Published: Wednesday, April 11, 2012, 11:04 [IST]

The Indian car industry which was once considered the fastest growing market in the world has braked close to a halt in 2011-12. Sales have been severely affected by increasing fuel prices and bank interest rates. Releasing data on sales during 2011-12, the Society of Indian Automobile Manufacturers has stated that sales for the year stood at 20,16,115 units.

The car industry in India was particularly robust in 2008-09 and 2009-11 registering growth rates of 29% and 25% respectively. However the last fiscal year proved to be a big disappointment to major carmakers. While local sentiment took a beating due to increased fuel prices, carmakers were also affected due to international conditions such as the economic crisis in Europe and America.

SIAM has said that the 2.19% growth achieved this year was initially unexpected. It had in fact said in January that a negative growth could not be ruled out. However a late surge in sales in February and March helped the industry recover some sales. The industry body has now stated that 2012-13 could be a better year for carmakers and it has predicted a double digit sales growth.

SIAM's President S Sandilya has found the silver lining in last year's sales. He said it was the first time sales had crossed 2 million units in a year. He said the huge jump in March sales had provided carmakers the much needed boost to look forward to improved sales in 2012-13.

Article Published On: Wednesday, April 11, 2012, 11:04 [IST]

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