The fact that the fuel prices rose nearly twice in the last 2 months has taken a toll on the sales of cars in the month of July 2011. Increase in the rate of interest for loans by banks also contributed to the drop in car sales. Estimates place the drop to almost 16 percent of what it was the year before. It is also said that this dip in the sales of cars is the biggest which the country has witnessed in the automobile sector in the last 3 years. SIAM has given official figures related to the number of units. July 2011 saw sales of 133,747 units as against 158,767 units from the month of July 2010. Vishnu Mathur SIAM’s Director General was of the opinion that the car sales were affected since the probable customers may be waiting for a good deal or rather the interest rates to drop down before making up their minds on the purchase.
