Industry body SIAM said that India's auto sales growth may not move into the negative zone this fiscal as feared earlier because of good pick up in demand during February and the first half of March.
It had earlier expressed concerns about the possibility of car sales declining in 2011-12 for the first time in nine years.
Society of Indian Automobile Manufacturers Director General Vishnu Mathur told PTI that "As of February, car sales growth in the domestic market for the fiscal is at 0.31%. It is likely that we may end the year between 0-1% growth.”
As per SIAM's latest data, during the April to February period, car sales in India stood at 1,786,249 units as against 1,780,740 units in the year-ago period.
Mr Mathur said while car sales in first half of March were good as customers advanced purchases ahead of the Budget fearing price increase, the second half may not be as good as prices have gone up due to excise duty hikes. He added that "So in March, the first half and the second half may cancel out each other with a net flat sales growth.”
In February, SIAM had said that the Indian passenger car sales may miss the target of 0-2% growth, after revising it three times for 2011-12 thus hinting at the possibility of a decline for the first time in nine years.
In the April to January period this fiscal, domestic passenger cars sales fell by 1.19% to 1,574,847 units from 1,593,850 units in the year ago period.
However, sales had picked up in February posting 13.11% growth to 2,11,402 units as customers rushed to buy vehicles fearing rise in prices post the Union Budget.
Sourced from PTI