High fuel prices, escalating interest rates, weak monsoons and an otherwise complex market economy have all had their toll on auto sales in the past 9 months. Slowly diminishing, the month of July seemed to be at the end of the order where Indian auto market sales were concerned.1.43 lakh units were sold during the month as per Society of Indian Automobile Manufacturers (SIAM), and this makes auto manufacturers fearful of the upcoming festive season as well.
Maruti Suzuki strike and lock out also compounded problems in the auto markets. The company has not seen any production since the 19th of July which has had an adverse effect on the entire auto industry. Society of Automobile Manufacturers has stated that car sales are slackening and demand has been dipping with no improvement in sight. Fuel prices continue to escalate further impacting customers decisions to purchase new vehicles and the economic situation is not doing anything to boost their spirits either. Enquiries are not turning round to purchases even though showrooms are full of customers.
SIAM is optimistic of the change ion guard at the Finance Ministry level. With PC Chidambaram taking over the reins as Finance Minister from outgoing Pranab Mukherjee, it is hoped he will bring about more positive effects where auto interest rates and disparity between prices of petrol and diesel car concerned.
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