Car Sales Drop 19% in India

Automakers sold 118,100 cars in India in August compared with 145,100 units a year earlier, according to the Society of Indian Automobile Manufacturers. Last month marked the first year-over-year decline in 10 months.

SIAM attributes the plunge to high fuel prices, rising interest rates and the impact of a month-long shutdown of a Maruti Suzuki India Ltd. assembly plant.

Maruti sales plunged 50% to 31,700 vehicles in August as supplies shrank after labor violence caused the company to suspend work at its factory in Manesar, India. As a result, the company's market share fell to a record-low 26.8%.

SIAM says it will review its sales forecast next month. The group predicted in April that sales in the fiscal year ending on March 31, 2013 would jump as much as 12% to 2.3 million units. In July SIAM lowered its growth estimate to 9%-11%.