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India’s Carmakers Seek Federal Aid After 9% Sales Drop
The Society of Indian Automobile Manufacturers says it will ask for a government stimulus plan to counter the country's worst slide in auto sales in at least 16 years.
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The Society of Indian Automobile Manufacturers says it will ask for a government stimulus plan to counter the country's worst slide in auto sales in at least 16 years.
SIAM reports that wholesale deliveries of new passenger cars in India fell to 139,600 units last month from 153,500 units in June 2012.
June marks the eighth consecutive month of year-over-year declines in the country's car sales. SUVs and commercial vehicle volume there both shrank 5% last month.
SIAM attributes the ongoing slump to India's slow economic growth, rising inflation and high interest rates and fuel prices. The group may suggest a scrappage program and a reduction in the taxes that carmakers must pay on vehicles.
In the April-June period, wholesale car deliveries in India dropped 10% year over year to 434,600 units. Demand fell 6% for vans and 8% for commercial vehicles, but SUV sales rose 5%.
SIAM concedes there is "no way" that the country's sales in the fiscal year ending on March 31 will reach its forecast of a 3%-5% gain from 1.89 million vehicles from the previous period. The group expects deliveries to contract this year, but it has not yet revised its outlook.
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