Car Sales Slowing Down in India
Posted on October 14th 2008Welcome back!
In India, cars sales are slowing down. As per the SIAM numbers for the first half of the year (Apr-Sept), the sales only increased by 5.39% with respect to the same period last year.
This 5.39% number came when the dealers are giving a lot of festive discounts and even car companies are passing on the discounts. Recently many new cars are launched. Some of the worst hit companies are Maruti, Tata and Hindustan Motors. Maruti 800 saw 17% decline in these 6 months sale (33% decline for September 2008). Tata Indica saw 28% decline in the same six months (24% decline for September 2008). HM sales figures are also down by 24%.
These slowdown in the sales of the cars are being seen due to higher car loan interest rates and liquidity crunch in the market. Stock market is also at 50% of its peak. Many people have lost big money in the market. Some people are expecting a slowdown in the overall economy. So they are trying to save instead of spending on the cars.
This situation is not going to get better in near future.
By Auto India in Auto India News
Rahul responded on 15 Oct 2008 at 12:59 am #
Very true there has been a slump in Indian car sales. But it will soon recover as there are more new car launches by this year-end.
Rahul