India’s car sales are expected to remain near-flat this fiscal owing to prolonged strike at Maruti Suzuki’s Manesar plant, double-digit interest rates and high fuel prices, apart from very little signs of cooling inflation in industry sectors.

Issues such as shortage in diesel car engine supplies continue to create dense fog in the auto industry growth ride over the next three months.

The Society of Indian Automobile Manufacturers (Siam) has downgraded its forecast for car sales for the fourth time in continuum this fiscal. The industry body put growth prospects at zero to two per cent against its earlier forecast of four per cent. In 2010-11, industry sold 2.52 million cars. However, the Siam has expressed optimism for 11 to 13 per cent growth in 2012-13.

“The indications (of growth) for 2012-13 are good at 11 to 13 per cent for the car industry. With inflation moderating, chances are interest rates could come down,” said S Sandilya, president, Siam.

Car sales growth accelerated to 8.5 per cent at 159,325 cars in December 2011 compared with seven per cent growth recorded in November 2011 (171,131 cars) over the year-ago period. In December 2010 car sales were 146, 856 units, Siam (society of Indian automobile manufacturers) said on Tuesday. The last month of the year is considered a lean month for the industry due to depreciation on previous-year models.

Research firm Fitch on the other hand predicts two to four per cent for car industry in 2012. “Any reduction in interest rates this year is unlikely to boost auto sales significantly given negative sentiments of buyers with regard to general economic conditions,” the firm said in a research report released on Tuesday. Car sales growth slowed to four per cent in 2011 at 1.95 million cars against 1.87 million sold in 2010, Siam said.

Other segments such as light commercial vehicles grew 19 per cent in December 2011 at 41,234 units (34,631 units in December 2010) while scooters grew 16 per cent at 218, 974 units (188,391 units in December 2010). Siam has predicted motorcycle sales to grow 10 to 12 per cent next fiscal while that of commercial vehicles to grow 12 to 14 per cent.