The Car Sales in India continue to decline for the 7th consecutive month, signalling at a doomsday for the beleaguered automobile industry. The decline in May was pegged at 12.26 per cent. The latest data was released by the Society of Indian Automobile Manufacturers (SIAM).
In May 2012, 1,63,222 units were sold in the market. However, the figure went down to 1,43,216 units a year later. This is the longest stretch of decline in car sales. Even during the 2008-09 economic downturn, car sales dipped for a few months and bounce back strongly soon after.
This is definitely a matter of high concern for the Indian automobile industry. It is being speculated that global economic slowdown, high inflation, high interest rates and lack of trust among the consumers are the factors attributed to the continuous decline in car sales over the last few months.
In May 2013, Maruti Suzuki India has suffered a 8.25 decline in its domestic sales. Tata Motors too saw its sales going down by 48.60 per cent, which is considered a huge fall. Surprisingly, Hyundai posted a marginal increase of 0.35 per cent in its sales. Honda Cars India surprised everyone with an 9.31 per cent increase, thanks to its newly-launched compact sedan, Honda Amaze.