Auto sales, one of the key parameters of robust economy is likely to slow down this financial year amidst high interest rates. Auto firms 
have lowered their growth forecast to 2-4% this financial year from the earlier 10-12% as sales dipped for the third straight month. According to a data released by the Society of Indian Automobile Manufacturers’ (SIAM), sales of automobiles dipped 1.8% in September 2011. S Sandilya, SIAM President, while speaking to the press said that some moderation growth in expected. Mr Sandilya also added that for various products, the market will perform differently.
It is to be noted that in recent times, the Reserve Bank Of India (RBI) raised interest rates 12 times since March last year to control inflation. At the same time, prices of fuel have witnessed an increase which has prevented customers from making new purchases. Several auto makers such as Maruti Suzuki, Hyundai, Mahindra and Mahindra, Tata Motors have witnessed slump in sales. The festive season has done no good either and even after offering discounts and other lucrative offers, auto sales have failed to pick up.
