A booming economy and easier access to consumer finance helped lift sales of cars in India by 31% to 1.87m units in 2010.
Car sales in India grew by nearly 29 percent in December, but analysts are now cautioning that a slowdown is likely this year on the back of higher interest rates and vehicle prices. Tata and Mahindra have said they will raise vehicle prices to counter increasing input costs.
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Society of Indian Automobile Manufacturers (SIAM) President Dr Pawan Goenka also cautioned that market slowdown is coming. “Growth will not be as high as 30% that we saw last year. If we see a growth rate of 15%-18%, we should be happy,” he said at a press conference in Mumbai.
In 2011 the cost of consumer financing is expected to rise following actions taken by India’s central bank to raise interest rates to curb building inflationary pressures.
Automakers reported sharp jumps in December sales, with Mahindra & Mahindra reporting a 42-per cent rise, market leader Maruti Suzuki posting a 26-per cent jump and Tata Motors reporting a 31-per cent rise in India.
Spluttering Nano sales finally picked up in December, reaching 5,784 units in the month.
