India’s Auto Sales Growth Slows

Sales of passenger cars in India rose 3% to 168,400 units last month the smallest year-over-year increase since last June and the slowest April growth in 10 years, the Society of Indian Automobile Manufacturers says.

The group says rising fuel costs, tight credit and higher vehicle prices are stifling the demand.

SIAM reiterates that it expects passenger vehicle sales, which edged up 2% in the fiscal year ended March 31, to rise as much as 12% to 2.3 million units in the current fiscal year. Most of the growth will come in the second half as credit eases, the group predicts.