Car Sales in India Drop 7%

Wholesale deliveries of new passenger cars in India fell to 131,200 units from 141,600 units in July 2012, the Society of Indian Automobile Manufacturers reports. July marked the ninth straight month of year-over-year declines.

Indian demand for SUVs, which had been the market's only bright spot, unexpectedly plunged 18% to in July. It was the segment's first sales drop in four years. The country's government boosted excise taxes on SUVs by three percentage points to 30% in March.

Sales of commercial vehicles contracted 15% to 55,300 units.

SIAM blames slumping vehicle sales on India's weak economy, high interest rates and steep fuel prices.