This had to happen. Thanks to petrol prices moving towards moon with escape velocity , increased interest rates and pre-budget rumours about diesel cars getting more expensive, Indian car sales this fiscal are nothing short of being dismal. Statistically speaking, car sales in the country grew by a laughable 2.2 percent in 2011-12. This is the least growth rate seen in last three years. When the global financial crisis hit in 2008-09, car sales in India grew by just 1.4 per cent. Since then it jumped to 25 per cent in 2009-10 and 29 per cent in 2010-11.
Vishnu Mathur, director general of Society of Indian Automobile Manufacturers (SIAM), said, “The number of car owners is still pathetically low in India — there is huge scope for the auto industry,” Mathur told reporters in New Delhi.
Owing to the Central bank being expected to provide some relief from the increased interest rates, SIAM is hoping that the car sales will give a better show this fiscal.