India’s Car Sales Fall 10%

Wholesale deliveries of new passenger cars in India slid to 150,800 units last month from 168,300 units in April 2012, according to the Society of Indian Automobile Manufacturers.

April marked the country's sixth consecutive month of year-over-year volume declines the longest downturn since SIAM began gathering sales data in 1997.

Analysts note that price discounting on cars and a dip in gasoline prices weren't enough to overcome India's flagging consumer confidence and steep interest rates.

Even SUV deliveries, which soared 52% in the fiscal year ended March 31, rose only 4% last month. SIAM blames the government's three-point boost to 30% this spring in the tax automakers must pay on SUVs. The group says the tax increase prompted companies to hike the prices of those vehicles.

April demand rose 5% to 38,100 units for light commercial vehicles in India and 1% to 56,700 units for buses and medium- and heavy-duty trucks.