Car sales fall 8 per cent in November, outlook grim

Tags: News
Car sales in India slumped 8 percent in November, dashing hopes of a sustained revival in demand, as an expected festive season boom failed to materialise in a key growth market for global carmakers.

A gloomy economic growth outlook, high interest rates and rising ownership costs have curbed demand in India, where global brands have invested billions of dollars in a car market that saw sales growth of more than 20 percent 18 months ago.

Sales had grown at their fastest pace in 22 months in October, and carmakers had banked on a surge in demand during the annual festive season that began in September and peaked in November, when people typically make big-ticket purchases.

Car sales have grown just 1.3 percent in the April-November period from a year previously. The country's industry association has slashed its full year growth estimate to just 1-3 percent from an initial 10-12 percent.

"We had anticipated that not all months will be good," said Sugato Sen, deputy director general of the Society of Indian Automobile Manufacturers (SIAM). "Cars are within our forecast."

Automakers sold 158,257 cars in November, down 8.3 percent from a year earlier, according to data released by SIAM on Monday.

Sales of motorcycles were flat at 867,518 vehicles. Truck and bus sales stood at 61,410 vehicles during the month, down 7.3 percent.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Lawmakers must not dilute penalties for insurers on mis-selling

    The much delayed insurance laws (amendment) bill is back in the news and the positive statements of finance minister Arun Jaitley suggest that the gov

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

New model for effective education

After interacting with students and teaching community on a ...

Zehra Naqvi

Being unrealistic can be good for you

Depression is a term that most people use very casually ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture