Sales in Indian car market saw a drop of 19% last month. This is the first time that the car sales have taken a hit in last 10 months. Bike sales too saw a drop for the first time since January 2009. Thanks to a decrease in demand for new cars and bikes, many manufacturers were seen temporarily shutting down the production units to avoid inventory from piling up. Exports in Indian car market too were down for the first time since March 2001.
“Now we are entering a desperate zone,” said Sugato Sen, senior director of the Society of Indian Automobile Manufacturers (SIAM). “If the negative trends continue in September as well, we will have to revise our targets downwards.”