Car Sales Plummet 26% in India

Wholesale deliveries of new passenger cars in India tumbled to 158,500 units in February from 213,400 units a year earlier, the Society of Indian Automobile Manufacturers reports.

Last month marked the country's fourth consecutive year-over-year sales decline and the biggest percentage drop in more than 12 years. SIAM blames the slump on India's weakening economy, high interest rates, double-digit inflation and steep fuel prices.

The country's SUV demand continued to defy the market trend, jumping 35% to 47,900 units in February. Commercial vehicle volume plunged 35% to 21,500 units last month.

Sales at market-leader Maruti Suzuki fell 11% to 83,900 vehicles. Demand slid 7% to 33,900 units at Hyundai and plummeted 72% to 7,800 units at Tata.

From April 2012 through February, passenger car volume in India sank 4% to 1.71 million units. Commercial vehicle deliveries dipped 2% in that period.

SIAM, which originally forecast a gain of as much as 12% in the country's sales in the fiscal year ending on March 31, now predicts the market will shrink for the first time in 10 years. The group adds that automakers don't expect India's car demand to improve in the next three or four months.