Car Demand in India Drops 8%

Wholesale deliveries of passenger cars in India, which surged 23% in October, fell to 158,300 units in November from 172,500 units a year earlier, according to the Society of Indian Automobile Manufacturers.

The country's car sales have dropped year over year in three of the last four months. SIAM expects volume to weaken further in December. The group blames the declines on consumer worries about the domestic economy, steep interest rates and high fuel prices.

November demand for SUVs, which are favored by India's wealthy buyers, soared 70%. Commercial vehicle sales slid 7% to 61,400 units.

Car volume rose 2% to 74,800 units at Maruti Suzuki, was little changed at 34,700 units at Hyundai and plunged 42% to 13,500 units at Tata.