Page last updated at 10:49 GMT, Monday, 10 November 2008

Brakes put on Indian car making

worker at a Maruti plant
Indian car sales are expected to drop this year

Slowing demand sent car production in India down 12.32% year-on-year in October, industry figures have shown.

And, according to the Society of Indian Automobile Manufacturers (SIAM), domestic passenger sales also fell 9.1% over the 12 months.

Some local car makers, including Tata Motors, have announced temporary plant closures to avoid building inventories.

SIAM says India, one of the fastest growing auto markets, is trying hard to sustain single-digit sales growth.

Between 2002 and 2007, vehicle sales in India grew on average over 14% a year, but that figure is expected to drop this year.

"The whole issue boils down to liquidity. Dealers are not getting enough money to hold stock," said Dilip Chenoy, SIAM's director-general.

Dealers complain that providing automobile loans remain expensive despite several rate cuts by India's central bank.

Domestic motorcycle sales also fell 14% year-on-year.



Print Sponsor


SEE ALSO
Indian car factory under blockade
24 Aug 08 |  South Asia
World's cheapest car goes on show
10 Jan 08 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific