Mumbai: Auto sales in the passenger as well as commercial vehicles segments slowed in the five months of this fiscal year, hobbled largely by higher interest rates and a slowing economy.
The passenger vehicle segment, comprising cars, utility vehicles and multi-utility vehicles, hit a three-year low with a growth rate of only 8% to 638,314 in the period, data from the Society of Indian Automobile Manufacturers released on Thursday showed. The segment had grown 13.6% for the same period in FY07 and 20.58% in FY08, largely on the back of easy credit. Two-wheeler sales grew by a faster 10.75%, a rise analysts attribute largely to a reduced need for credit and buying by government employees whose pay has increased after the Sixth Pay Commission report was accepted by the Union cabinet in August.
Slowing: The passenger vehicle segment, comprising cars, utility vehicles and mutli-utility vehicles, registered a growth rate of 8%. Indranil Bhoumik/Mint
Sales of light commercial vehicles dropped to a growth rate of 9.51%, despite a marginal increase in the commercial vehicles segment. Over the past two years, the growth rate in light commercial vehicles sales has been declining by almost half annually for the period, matching the decline in sales of heavy commercial vehicles.