Business

Domestic car sales down 9%; SIAM seeks stimulus package

July 12, 2013 03:15 PM

New Delhi, July 12: Car sales in India fell for a record eighth month in row in June with a dip of 9 percent as economic slowdown and low consumer sentiments continue to hit demand, prompting industry body SIAM to seek stimulus package for the automobile sector from the government.

With actual sales in the first quarter of this fiscal turning out to be wide off the mark from what it had forecast in April, Society of Indian Automobile Manufacturers (SIAM) stayed away from revising sales projections it had made in April this year and stated that even those targets were unlikely to be met, except in two-wheeler segment.

According to the latest figures, domestic car sales stood at 1,39,632 units in June as against 1,53,450 units in the same month last year.

"The slow economic growth, high interest rates and fuel prices, high inflation are all affecting consumer sentiments. Government needs to have a re-look and bring a stimulus package for the auto industry which will help in achieving higher growth," SIAM President S Sandilya told reporters here.

SIAM is looking at the a stimulus package similar to the one given during the 2008-09 downturn, in which excise duty on two-wheelers, small cars and commercial vehicles were reduced to 8 per cent, SIAM Director General Vishnu Mathur said.

He, however, said the industry body has not yet approached the government for the same.

In June, market leader Maruti Suzuki India posted 8.17 percent decline in domestic sales at 65,172 units as against 70,977 units in the corresponding month last year.

Hyundai Motor India Ltd posted a marginal increase in car sales to 30,577 units from 30,363 units in June last year, while Tata Motors had a decline of 29.17 percent to 9,628 units from 13,595 units in the same month last year.

Homegrown major Mahindra & Mahindra posted 17.17 percent decline in its utility vehicle sales at 15,916 units from 19,348 units in June last year.

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