SIAM lowers forecast for car sales growth in current fiscal year

The Society of Indian Automobile Manufacturers (SIAM) lowered its car sales growth forecast to 0-2% for the 2011 fiscal year as a result of the effects of fuel price fluctuations and high interest rates. “The factors that are affecting the automobile industry such as high interest rates, inflation, high petrol prices and negative economic sentiments are still prevalent. Hence, taking those into consideration, we see growth in the ongoing fiscal to be lower from the previous forecast,” said SIAM’s S. Sandilya. This is the third time that SIAM has lowered its car sales growth forecast and in this new forecast, the automobile industry group said that the overall automobile industry growth for this fiscal year will be 11-13%. (January 10, 2012)