The factors that are responsible for decline in sales of car are rising oil prices, higher interest rates as well as lack of finance.
New Delhi(PaisaWaisa) August 13, 2008: After recording double-digit growth in the last two and a half years, the passenger car market in India had witnessed a decline of 1.71% at 87,724 units in July 2008 when compared with 89,250 units in the same month last year.
The factors that are responsible for this worst situation are rising oil prices, higher interest rates as well as lack of finance. Last time, a decline in sales was observed in November 2005 when this segment witnessed a dip of 2.3% at 68,840 units more so compared with 70,468 units in November 2004.
On the present issue of decline in the sales of cars, Dilip Chneoy, Director General, Society of India Automobile Manufacturers (SIAM) said, "It is for the first time after November 2005 that the passenger car segment has registered a decline, that is, largely due to cost of finance and its availability."
According to SIAM, the market leader Maruti Suzuki India has registered a growth of 1.45% at 45,757 units in July against 45,101 units in the same month last year. Moreover, the sales of Hyundai Motors remained flat at 15,061 units in July 2008 when compared with 14,981 units in the same period a year ago. As a matter of fact, the sales of General Motor India has increased by up to 48.7% at 4,415 units as compared to 2,969 units last year. In comparison, all the leading car manufactures, including Tata Motors recorded a decline of 8.87% at 12,012 units against 13,181 units in the same month, previous year.
The main decline in the sales of the car can be seen in the executive segment which includes Chevrolet Optra, Honda Civic, Skoda Octavia and Combi, BMW 3 Series, Toyota Corolla and Mercedes C-Class. As a matter of fact, this executive segment marked 1,983 units last month against 3,150 units in July last year. There is a decline of up to 37.05%.
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