Auto industry body Siam released new figures on Monday that show sales in June have fallen to their lowest level in two years. They inched ahead just 1.6% to 143,370 units.
One major factor in the slowdown in car sales was Maruti. The worker’s strike at a key factory last month cut production by about 16,000 vehicles. And sales went down nearly nine percent, the first decline since December 2008.
Also, while cars sales may have shot up by 30% last fiscal, but Pawan Goenka of Siam has said sales is likely to grow just 11-13% this year. Goenka added that rising interest rates were a major reason for the slowdown.
Energy firm Essar Oil has reported a revival in the first quarter coinciding with the rise in global crude prices. Net profit jumped to Rs469 crore compared to a loss of Rs70 crore in the same quarter last year. Revenues meanwhile gained 36% to Rs16,478 crore. And the firm’s gross refining margins went up 27% to $7.38 per barrel.
Indian markets began the week in the red, registering their biggest fall in more seven days. Poor global markets and worries about quarterly earnings pulled down both indices. The Sensex tumbled 137 points to 18,721. And the Nifty declined 45 to 5,616.