Commercial vehicle sales in India slows down

India’s Tata Motors Ltd. is seeing the sales of its commercial vehicles slow down as high interest rates and the credit crunch squeeze India’s vehicle market, said Managing Director Ravi Kant. “In commercial vehicles we are seeing tremendous pressure especially in heavy and medium trucks, he said in an interview. Tata Motors, the country’s biggest carmaker by sales, sold 43,576 cars and commercial vehicles in August, down 3% year on year. Local sales of cars and sports utility vehicles fell 6.3% year on year to 15,573 units, while sales of commercial vehicles slid 0.8% to 23,231 vehicles. “I think certain external elements have accelerated the process [of slowing vehicle sales] and the key amongst them has been the shrinkage in availability of consumer finance,” Kant said. High interest rates and an increase in fuel prices are deterring first-time buyers and fringe consumers from purchasing, which in turn is hurting the industry, Kant said. (September 4, 2008)