Data released by the Society of Indian Automobile Manufacturers (SIAM ) shows that India’s car market continued to decline in October.
Car sales were down 6.6% year-on-year to 98,900 units.
Things were even worse in commercial vehicles. Sales of trucks and buses slumped nearly 36% with the latest data showing industrial activity expanding at its slowest pace in a decade.
October’s car market decline followed a slight uptick in September. Hindu festivals in October failed to stimulate the market.
Industry analysts say that dealer liquidity is becoming an issue in India, with dealers unable to get sufficient funds to acquire stock.
Also automobile loans remained expensive through October as banks delayed before passing on rate cuts by the Reserve Bank of India.