Car sales in India grew by just 2.19 percent in 2011-12, the slowest in two years but industry body SIAM on Tuesday said it expects the growth to be around 10-12 percent in the ongoing fiscal on better macro economic prospects.
Society of Indian Automobile Manufacturers (SIAM) that had in January cautioned that car sales growth in India could be in negative territory, said a late surge of sales, specially in March had helped it to stay positive in FY12.
According to the latest figures issued by SIAM, total car sales in India in 2011-12 stood at 20,16,115 units as against 19,72,845 units in the previous fiscal, up 2.19 percent.
"This was the first time the car sales in the country crossed the two million units mark. A late surge of sales in the last quarter of the fiscal, specially in March, as buyers advanced purchases ahead of the Budget helped," SIAM President S Sandilya told reporters in New Delhi.
In March, car sales rose by 19.66 percent to 2,29,866 units from 1,92,105 units in the same month last year.
When the global financial crisis hit in 2008-09, car sales in India grew by just 1.4 percent. Since then jumped to 25 percent in 2009-10 and 29 percent in 2010-11.
SIAM said it expects the car sales growth to be around 10-12 percent in 2012-13, while that of two-wheelers has been pegged at 11-13 percent.
For the overall auto industry, the industry body has projected a growth on 10-12 percent for FY13 as against 12.24 per cer cent achieved in 2011-12.
Commenting on car sales, Sandilya said in the last fiscal the industry suffered due to high interest rates, inflation and rising fuel prices. Moreover, strike at the country's largest carmaker Maruti Suzuki India's (MSI) Manesar plant had also affected availability.
In the fiscal 2011-12, MSI had posted sales of 8,55,730 units as against 9,66,447 units in the previous year in the domestic market, down 11.46 percent.
Hyundai Motor India posted sales of 3,87,168 units as against 3,58,904 units in the previous year, up 7.88 percent. Tata Motors posted a marginal rise to 2,57,966 units from 2,55,704 units in the 2010-11.
Sandilya said in FY12, India maintained its position as the 5th largest car producing nation in the world.