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New Delhi, May 10: Domestic car sales plunged 10.43 per cent in April — falling for the sixth month in a row — to 1,50,789 units from 1,68,354 units during the same month of 2012, with weak consumer sentiments and high interest costs dragging down demand.
This is the longest stretch of decline since the Society of Indian Automobile Manufacturers (Siam) started collating data in 1997-1998.
According to Siam, the drop in petrol prices by Rs 3 a litre last month and a marginal decline in interest rates have failed to jack up demand.
Tata Motors was the worst hit, with sales crashing 52.07 per cent to 8,918 units in April from 18,610 units in the year-ago period.
Total vehicle sales across categories declined 0.34 per cent to 14,67,492 units from 14,72,452 units a year ago.
“Weak consumer sentiment is affecting car sales. The budget hasn’t done anything to improve market sentiments. This is the sixth month that we are witnessing a fall in car sales,” Siam deputy director-general Sugato Sen said.
He said the last longest stretch of a fall in car sales was between March 2002 and July 2002.
“Car sales have been falling in India since November last year. We have never witnessed such a long consecutive decline in car sales since data have been analysed by Siam since 1997-98,” Sen added.