Related News
Car purchases in India shrink 19% in August
Source: Agencies |
September 11, 2012, Tuesday
|
Print Edition
Print Edition
CAR sales in India plunged 19 percent in August, their first fall in 10 months as slowing demand adds to the economic woes of Asia's third-largest economy, industry data showed yesterday.
The Society of Indian Automobile Manufacturers blamed high interest rates, a vehicle tax hike and rising fuel prices for dampening demand.
"Unless something is done to control the external environment, things will not improve," said Sugato Sen, senior director of the society. He called on New Delhi to roll back a vehicle tax and resist pressure to further raise subsidized fuel prices.
The government, however, has been under intense pressure to reduce its fiscal deficit by cutting spending for subsidies, particularly on fuel. Sen also urged the central bank to lower interest rates, but the Reserve Bank of India continues to flag India's high inflation as a dominant concern.
Sales of two-wheeled vehicles, including scooters, which are ubiquitous in rural India, also fell by 4.5 percent in August, their first drop since January 2009. Rural demand, which has given India ballast against the slowing global economy, has been hit by a monsoon.
The society says it may have to cut back its car sales growth forecast for the fiscal year ending March, now pegged at 11 to 13 percent.
The Society of Indian Automobile Manufacturers blamed high interest rates, a vehicle tax hike and rising fuel prices for dampening demand.
"Unless something is done to control the external environment, things will not improve," said Sugato Sen, senior director of the society. He called on New Delhi to roll back a vehicle tax and resist pressure to further raise subsidized fuel prices.
The government, however, has been under intense pressure to reduce its fiscal deficit by cutting spending for subsidies, particularly on fuel. Sen also urged the central bank to lower interest rates, but the Reserve Bank of India continues to flag India's high inflation as a dominant concern.
Sales of two-wheeled vehicles, including scooters, which are ubiquitous in rural India, also fell by 4.5 percent in August, their first drop since January 2009. Rural demand, which has given India ballast against the slowing global economy, has been hit by a monsoon.
The society says it may have to cut back its car sales growth forecast for the fiscal year ending March, now pegged at 11 to 13 percent.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
