Sales Growth Slows in India

Car sales in India expanded only 3% to 223,500 units in June, according to the Society of Indian Automobile Manufacturers. That compares with a 7% growth rate for April-June.

The trade group reports that a supply chain disruption caused volume for market leader Maruti Suzuki to fall 10% to 92,100 units last month. But sales climbed 10% to 39,100 units for Hyundai and 8% to 17,100 vehicles for Mahindra & Mahindra.

SIAM predicts car sales in India in the current fiscal year that began April 1 will surpass the group’s most recent 6%-8% growth forecast. SIAM originally expected a 12% jump in fiscal-year sales. But it lowered its outlook twice because of worries over the impact of tax increases and regional bans on cars powered by large diesel engines.

Now SIAM says its optimism has been revived by the prospects of declining interest rates, stronger economic growth and a favorable monsoon season.