Car sales decline in India for the first time in a decade.
India witnessed a drop in car sales by 6.7% in 2012
The Society of Indian Automobile Manufacturers (SIAM) has announced that in 2012, India witnessed a drop in its total car sales by 6.7%, down from the previous year, and far from its target of 10-12%. According to SIAM, in 2012, a total of 1.89 million cars where purchased in India, compared with 2.03 million in 2011. India has one of the fastest growing economies in the world economy and makes up one quarter of the BRIC nations group, alongside Brazil, Russia and China. During the past decade, India has witnessed a significant rise in its auto mobile sector, which is seen to be one of the fastest growing in the world, recording an annual increase in sales by as much as 30%.
Industry experts originally predicted that the auto industry in India would meet it's 9 million mark by 2020
Industry experts orginally predicted that the Indian auto industry would meet its 9 million mark by 2020. SIAM has said a decline in the overall Indian economy and high interest rates are factors that are to blame. Since 2010, the Indian economy has witnessed a significantly slow growth. It is forecasted to have grown by 5% in the year to March 2013, the slowest pace in a decade.
This has a been prolonged by the Indian government increasing the interest rate 13 times. The current interest rate is at 7.75%. However in spite of this, European automakers are continuing to invest in India's auto sector. Most recent, BMW who announced in April that it will move production of the MINI Countryman to India by the year of the year.