If cars don’t find takers, SUVs will. In view of the strong demand for utility vehicles seen in June, the automotive industry body Society of Indian Automobile Manufacturers (SIAM) lowered the projected growth rate for cars in this financial year to 9-11% even as it increased the projection for overall passenger vehicles – which includes utility vehicles – to 11-13%.
For utility vehicles alone, the projection has been raised from 10-12% to 29-31%.
In June, Indian auto companies sold 155,763 cars – a growth of 8.3% over last year – the lowest since last October. Utility vehicles saw a 45% growth as vehicles like Mahindra Bolero and Toyota Innova saw all-time high sales while Maruti’s Ertiga brought in new customers.
"Fuel prices have come down moderately, interest rates are not going up, the government is under pressure to come up with reforms, we think it is kind of reasonable forecast," said S Sandilya president, SIAM.