Reports in India suggest Mahindra & Mahindra will face engine capacity issues for some models.

The Indian automaker unveiled an improvement of 8% net profit for the first quarter of this year, pushed by strong volume.

However, sales overall in India grew at their slowest pace in more than two years in June – just 1.62% to 143,370 cars from 141,086  – as higher fuel prices and rising loan rates kept buyers away from showrooms.

This is the lowest percentage gain since a 1.16% increase in March 2009, when sales were hit by the global economic slowdown, Dow Jones reported. The single-digit growth in June followed a rise of 7% in May and 13% in April.