The Society of Indian Automobile Manufacturers has issued figures for the financial year 2011-12, and total car sales for the period have grown by 2.2 per cent over the previous year. This is at odds with the grown in the previous year, when sales grew by 29 per cent in 2010-11 compared to 2009-10.
The industry has been affected the most by high interest rates, inflation and rising fuel prices. Another factor was the two strikes at Maruti's Manesar facility that disrupted production considerably. There was a surge late in the fiscal year - March in particular showed a gain of 19.7 per cent over the same period the previous year, a sign of buyers trying to avoid the extra taxes the new budget brought with it. 2011-12 also marked the first time car sales crossed the two million mark.
Growth projections for the current fiscal are guardedly positive, with SIAM quoting an expected growth rate of 10-12 per cent on the expectation that the RBI will decrease interest rates
