2.5 million Cars sold in India in 2010-11

Financial year 2010-2011 was simply a milestone for the Indian auto industry as a total sale of 2.5 million cars was registered in that period.

This is one of the most remarkable achievements of the industry in its history but now the speculations say that the same progress is not expected to repeat in the running fiscal. The major reason given behind this slow down is the higher cost of finance and the other is growing prices of inputs making cars dearer.

Passenger car segment which also include utility vehicles reached a hike of 30% in its sale during this period. In this fiscal a total of 64 new cars were launched on the Indian roads. The figures are disclosed by Society of Indian Automobile Manufacturers' (SIAM).

As per the statement made by SIAM president Pawan Goenka, the Indian auto industry faced the best time in the last fiscal but the scenario is not going to continue this year with the growth rate to lie between 12-15 %. The major reason given behind this slow down is the hiked up prices of as steel, copper, aluminum, lead and natural rubber which has overall increased the prices of car models in India.  Due to this increase in commodity prices, the car manufacturers have declared a fixed hike on all the models.

Goenka also commented that the companies are trying to absorb this increase in input cost since pretty long time but due to extreme stressed profit margins, the cost was increased by the manufacturers.