Car sales jump 7% in Nov; bad months ahead, warns Siam
According to figures released by the Society of Indian Automobile Manufacturers (Siam) today, domestic passenger car sales stood at 1,71,131 units in November, as against 1,59,939 units in the same month last year. “Domestic car sales have bounced back as the base in November last year was low. Also, we have seen some revival of demand in last month,” Siam senior director Sugato Sen said. However, sales in December are likely to be lower than in November, he said.
According to the Society of Indian Automobile Manufacturers, the passenger car segment may not even see single-digit growth in the current fiscal.
“During the Auto Expo next month, we are going to revise our sales projections for the fiscal ... I feel the passenger car segment will again be downgraded,” Sen said. In October, Siam had significantly lowered its passenger car sales growth forecast for 2011-12 to 2-4 per cent, the second revision after pegging it at 10-12 per cent in July, as against its projection of 16-18 per cent announced at the beginning of the current financial year.
“The entry-level car segment, which is the biggest contributor to sales, has been hit most because of fuel hikes and rising interest rates. This is the most sensitive segment. However, demand in the upper-end segment is comparatively doing well,” Sen said.
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