India’s car sales in February saw the steepest monthly decline in 12 years and looks headed for the worst annual performance in more than a decade as a slow economy and high interest rates pressured automobile makers, industry data revealed on Monday.
Car sales fell by 25.7% in February compared with the same month previous year. Customers, apparently coping with uncertainties ahead of the Union budget that came at the end of the month, held back purchases. In December 2000, car sales had fallen by 40%.
The Society of Indian Automobile Manufacturers (Siam) forecast that annual sales would shrink for the first time since 2002-03.
Sales have contracted by 4.64% in the current financial year so far as compared with a year earlier.