India car sales witnesses 7% growth in November

The sales of passenger cars in India for the month of November is reported to improve registering a growth of 7% as compared to corresponding time last year. This is the first time in the last five months to see a positive growth in the country. But, this is not going to bring the smiles back to the car manufacturers as the sales growth is still behind the predictions. The growth predictions for car sales in the country are revised thrice so far by the Society of Indian Automobile Manufacturers (SIAM). 

They predicted a substantial growth of 16-18% at the beginning of the FY2011-2012 in April. Then cut down the predictions to 10-12% in July followed by more modest growth forecast in October at 2-3%. However, the car sales in the month of December are likely to fall further.  The leaders of Maruti Suzuki India and General Motors, Mayank Pareek and P Balendran have been distraught saying that future growth in the car market this year seems to be unlikely.  The car sales usually peak during the festive season. But the car sales during the season were unusually flat without recording much growth. This means the latest predictions from SIAM is also unlikely to be met for this fiscal.

After the festival month of October, the car manufacturers have literally given up hope on the growth. The constant interest rate revisions from RBI and numerous petrol hikes have been the culprits for a low overall car sales growth for the past few months. November sales from various auto makers have been a mixed bag. Country’s leading car manufacturer Maruti India which was deep in trouble with labour unrests at its plant, had seen a negative growth of 17% against the same month last year. On the other hand Hyundai India, Toyota India and Ford Motors had seen a remarkable growth despite the slow car market.

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