SIAM to revise forecast for car sales in India

As per the recent reports from the auto companies in India regarding their sales figure this fiscal, it is found that there is a slowdown in the Indian Auto market. The reason behind this is the continually increasing fuel prices in the country, apart from this the increase in interest rates could also be the reason of this slowdown. The Society of Indian Automobile Manufacturers (SIAM) has decided to reduce the augur regarding the car sales growth for the year 2011-2012.

Several companies have reported that the June sales have lowered to a great extent than what they had expected, the figures came down to about 20%. At this rate the companies would not be able to achieve their targets that they have planned for this year.

Pawan Goenka, president of SIAM said that they will have to arrange a meeting to prepare a new forecast for this fiscal . The final decision regarding this would be made when the total sales figure will be calculated for the month of June. The Indian Auto Majors like Maruti India, Hyundai Motor and Tata Motors reported that there combined June sales has dropped to 4.3%. Tata Motors is the one which is affected the most as the company's sales figure dropped down to around 21%.Of all these factors SIAM unwillingly reduced its forecast for car sales to 16-18% which was earlier 30%.

The major swing that came in the market was when Maruti India's chairmen said that they have only expected a sales growth of just 5% in the fiscal year 2011-2012. This statement from the chairperson really gave a shock to the Indian Auto Industry. Maruti India in the year 2010-2011 has increased its sales figure to 25% and the growth in the whole Auto industry was about 30%.

The month of June has really been bad for the Auto makers as they have reported a decline in the sale of their cars in India in this month. Maruti's sales figure also dropped to about 3.8%, this is the first time that Maruti is reporting a decline in its sales figure after December 2008.The Auto makers believe that this slowdown in the market will be short termed and soon the market will again come into flow.