SIAM lowers the growth estimate of Indian Automobile Industry

The automobile industry in India will grow slowly, the domestic sales growth for FY12 is now estimated to be 10-12%. Earlier estimates by SIAM, the industry body, had pegged the growth rate at 16-18%.

Pawan Goenka, president of industry body Society of Indian Automobile Manufacturers (SIAM) shed light on the change in perspective by SIAM.

Therefore, domestic car sales in India would grow at a slower pace during the FY12. This will be in effect because of a combination of reasons like hardening of interest rates, increasing fuel costs and rising vehicle prices put off potential consumers.

Monthly data showed that the country's domestic car sales grew by only 1.6% in June when compared to the corresponding month of last year.

The industry body stated in its monthly reports that the manufacturers sold a total of 143,370 cars in the domestic market last month, compared with 141,086 cars sold in the same month a year earlier.

Meanwhile the local manufacturers had sold 158,817 passenger cars in the domestic market in May.