India’s Car Sales Slide 12%

Registrations of new passenger cars in India fell to 173,400 units last month compared with 198,100 units in January 2012, according to the Society of Indian Automobile Manufacturers.

January marks the third consecutive month of year-over-year declines in the country's car sales. Analysts attribute the slump to steep fuel costs, high interest rates and weakness in the domestic economy that has eroded consumer confidence.

SIAM, which originally forecast a gain of as much as 12% in India's sales in the 12 months ending March 31, now predicts volume will shrink for the first time in 10 years.

Sales of all passenger vehicles in the country dropped 5% last month, buffered by a 41% surge in SUV demand.

India's commercial-vehicle volume slid 10% to 63,200 units in January, the trade group reports.

Sales by market leader Maruti Suzuki were almost flat last month. Demand rose 1% at Hyundai but plummeted 61% at Tata. Ford, General Motors, Nissan, Skoda and Toyota also posted lower volume.