Indian auto industry registers 7% increase in sales figures in May 2011

Compared to the sales figures registered by Indian auto industry in May 2010, the industry managed to better their figures by only 7% this May. A total of 158, 817 units of passenger vehicles were sold in May 2011 compared to 148, 425 units sold in may 2010.

In May 2010, the industry improved sales figures by a good 30% and compared to that, this year’s meager 7% seems like a failure to industry experts. Mr Sugato Sen, Senior Director, SIAM – Society for Indian Automobile Manufacturers, said, “If you look at the numbers now, looks like (reaching fiscal 2012 targets) will be difficult.”

Mr Sen added, “Interest rate is going up, availability of financing is down, prices are rising and sentiment is not very positive among customers. All this put together is impacting final sales.” On the other hand the fuel prices too are increasing every second month. Indian car buyers are probably facing the worst period in the history of car buying.