High interest rates, rising fuel prices and overall economic slowdown seem to be taking a toll on auto sales.
In the steepest fall in four months, passenger car sales dipped 12.5 % in December last year, thanks to a combination of high interest rates, rising fuel prices and overall slowdown in economic growth. As per the Society of Indian Automobile Manufacturers (SIAM), domestic car sales in December 2012 was 1,41,083 units, 12.5 % lower that 1,61,247 units sold in December, 2011.
This is the sharpest fall since August, 2012 when car sales had declined by 18.5%. To boost the industry sentiment and growth, SIAM has demanded a reduction in excise duty and continuation of all benefits of Auto Mission Plan (AMP) for another 10 years till 2026.