Car sales at domestic level will continue to decline in August on weak demand and rising interest rates. All three major carmakers Maruti Suzuki, Hyundai Motor and Tata Motors reported an alarming decline in domestic sales, although the manufacturers of smaller cars are growing.
Continuing labor problems in Maruti Manesar affected the production , the company had also fallen production earlier this month on weakening demand. Fall of the national sales in August was almost 17% to 77.086 units (92.674 units). The two analysts from Deutsche Bank Srinivas Rao and Amyn Pirani, said the decline year-to-date total sales in the Maruti "lag behind our expectations. The volumes are weak, even after considering the negative effects of interruption in production at the company's Manesar plant..... Our forecast FY12E national volume of 1.2 million (6.1% year on year growth) implies a growth rate of 14.3% over the next seven months compared with a decrease of 7.4% in volume year-to-date. "Vcommindia News
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