Car sales dip 12.3% in May

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Car sales dip 12.3% in May
Indian car makers are facing their worst sales decline in history after sales in May fell for the seventh consecutive month as economic gloom and rising interest rates hit a once much-flaunted growth market.

According to an industry body, sales slipped 12.3 per cent in the month at 143,216 units. Demand or cars in India, where most of the global automakers have made huge bets with hopes of booming growth, has been hit by rising ownership costs, fuel price hikes, and dark clouds looming over economic growth.

Sales fell 7 per cent in the fiscal year ended March 2013, the first annual fall in a decade, hurting the expansion plans of many auto giants like Ford, GM, among others.

Besides, the data from Society of Indian Automobile Manufacturers (SIAM) also showed that motorcycle sales fell 0.7 per cent in May at 881,288 units while truck and bus sales declined 10.6 per cent at 55,458 units.

Read more about: car sales
Story first published: Tuesday, June 11, 2013, 12:40 [IST]
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