There have been poor car sales in the country owing to the growing interest rates. Most of the car manufacturers like Maruti-Suzuki, Tata Motors, Hyundai, Honda and Mahindra, experienced flat sales in July when compared to the last year.
According to Maruti India, Car sales grew a mere 0.1% in July at 52,911 units against 52,839 units in July 2007. The company's big-volume small car portfolio grew just by 0.2% at 34,795 units while the Maruti 800 numbers declined to 17% at 4,953 units.
Even the Hyundai has reported a meager 0.4% increase at 15,066 units (15,003) and has decided to target on exports to overcome the lethargic market. The Tata Motors has also witnessed deprived sales of its passenger cars which fell 14% at 14,652 units in July (17,037), and there has been a drastic fall in sales of Indica.
The Mahindra & Mahindra is also in the same pace with its own set as well as that of its joint venture Mahindra-Renault. The company has registered 6.6% low sales at 17,302 units. The sales of Honda Siel cars are also slumped to 4,339 units against 4,533 units in July 2007.
The interest rates for retail financing have almost doubled over the last three years. Banks are unwilling to lend generously amidst the present stringent liquidity situation. However, the car companies are strained to offer discounts and freebies to lure customers.