Industry body SIAM today lowered car sales growth forecast to 9-11 per cent for this fiscal due to weak macro-economic conditions but said the country's overall vehicle sales will be more than estimated in April.
According to Society of India Automobile Manufacturers, the passenger car segment is now likely to grow by 9-11 per cent in 2012-13, instead of 10-12 per cent as projected three months earlier.
"The cost of car ownership has gone up by 2-4 per cent in recent months and there has been a moderation of per capita income. There is pressure due to high fuel prices and interest rates," SIAM President S Sandilya told reporters here.
During the April-June period, passenger car sales increased 5.22 per cent to 4,90,802 units, as against 4,66,452 units in the year-ago period.
He, however, said if there is no further hike in fuel prices and interest rates, the passenger car segment is likely to witness higher growth.
Sandilya said currently interest rates for car loans are ranging between 12 per cent and 15.3 per cent, while that for commercial vehicles are at 15-19.3 per cent.
SIAM has revised upward the total passenger vehicle sales growth at 11-13 per cent as against 10-12 per cent announced in April this year.
Talking about the total vehicles sales of all categories, Sandilya said: "We are not so bullish about future, but at the same time we are not going into a negative scenario at this moment. We are kind of maintaining the forecast. It's reasonable and overall we are optimistic."
SIAM revised the overall vehicle sales projection upward to 11-13 per cent from 10-12 per cent announced in April for the ongoing fiscal.
Total vehicles sales in the last three months stood at 44,74,627 units compared to 40,69,995 units in the same period last year, up 9.94 per cent, it added.
Comparing with the global markets, Sandilya said: "Japan, the US markets are doing very well, while China, Brazil and Europe are not growing enough... India is moderating."
He said SIAM has kept the growth projection for the two-wheeler sales unchanged at 11-13 per cent.