Car Sales Slip 1% in India

Carmakers wholesaled 154,900 vehicles to dealers in India in September compared with 156,400 units in the same month last year, according to the Society of Indian Automobile Manufacturers.

The downturn reverses gains of 5% in July and 16% in August.

Volume last month varied significantly by company and model type. Market leader Maruti Suzuki India posted a 10% gain, but sales by Tata Motors fell 7%. Demand for cars is soft, but sales of SUVs surged 25%.

Analysts say last month's decline in wholesale volume comes as dealer supplies of unsold vehicles grows. Many question whether India's auto market will continue to recover.