India is the second fastest auto manufacturing industry after the China in the world. But, it has managed its sales growth with only 1.6 percent in July 2011. Of the many reasons for this poor sales performance, rising of fuel prices and the interest rates on car loans are the major ones. The banks in India have raised the interest rates on car loans by 10 times than 2010.
Maruti Suzuki faced a huge production loss in the month of June due to workers strike in Manesar plant and have stopped the production for 14 days. Maruti Suzuki has registered decline in sales growth by more than 25% with 75,300 units in July 2011.
Hyundai motors also declined their sales by 1.48% and managed to sell only 49,667 cars in July 2011. July has been a good month for the car manufacturers, Mahindra as they have registered an increase in sales growth by 41% by selling 39,663 vehicles in July 2011. Nissan motors also increased its sales growth with 58.5% by selling 1,593 units in 2011 and Czech car makers, Skoda India continued its forward sales growth with 98% in July 2011 by selling of 2412 vehicles.
Tata motors registered decreased sales growth of 38% in July 2011, Kirloskar motors registered sales growth with 98.89% in July 2011, Volkswagen also registered their huge sales growth with 151% in July 2011 and the new Chevrolet’s Beat diesel, registered their sales growth rate with 34% in July 2011.
In Indian auto market, individually some brands have shown negative growth while the overall sales growth is in increasing mode.