New Delhi, Oct. 10: Car sales tumbled 5.36 per cent in September, prompting industry organisation Siam to lower growth forecast for the fiscal to just 1-3 per cent against an earlier target of 9-11 per cent made in July.
“Considering the low growth that we have seen in the second quarter of this fiscal and the overall macro-economic situation, we feel car sales will grow around 1-3 per cent this fiscal,” Society of Indian Automobile Manufacturers’ president S. Sandilya told reporters here.
In the second quarter of this fiscal, passenger vehicle sales, including cars, grew just 4 per cent at 6,18,000 units against 5,93,000 units in the year-ago period.
Vehicle sales in September fell 9.43 per cent, with two-wheeler sales reporting an 18 per cent slide.
During the month, domestic car sales declined to 1,57,536 units from 1,66,464 units in the same month last year. “New model launches at attractive price points in the utility vehicle segments have also been a factor in low car sales,” Sandilya said.
With no signs of a “significant” growth in the next three to four years, Siam also said the industry would fall short of its annual turnover target of $145 billion set for 2016 to the extent of 20-25 per cent.
Sandilya said the overall economic situation of the country, low sentiments, high petrol prices and interest rates were among the factors hurting the overall sales of the industry.
“Even we don’t expect to have a good festive season this time around,” he said.
Japanese auto giant Toyota today said it will recall 8,700 units of the Corolla Altis and the Camry in India to rectify faulty power window switches as part of a global exercise.
Corolla Altis made between July 30, 2008 and December 31, 2008 and Camry cars manufactured between September 1, 2006 and July 31, 2008 are affected by the recall.
The company will start the exercise from next month and will contact customers, check and change the part, if necessary, free of cost.