Following two consecutive months of drop, domestic car sales in India grew by 3.08 per cent in May 2014. According to figures released by the Society of Indian Automobile Manufacturers (SIAM), domestic car sales in July stood at 1,48,577 units as against 1,44,132 units in the same month last year. The total sales figure translates to a growth of 3.08 per cent.
After a 1.39 per cent rise in February, car sales dropped by 5.08 per cent in March and 10.15 per cent in April. Formation of a stable government, besides lower excise duties in the interim budget has brought back positive sentiments, reports SIAM.
Excise duties on small cars were cut to 8 per cent from 12 per cent earlier, as a result of the interim budget. As for SUVs and premium cars, the duties were slashed to 24 per cent. Despite the modest jump in sales, it is a bit early to comprehend the turnaround in the market given that the automotive industry has been on a downward spiral in recent times.
