January passenger car sales down 4.62 percent

New Delhi -  Sales of domestic passenger car segment fell 4.62 percent in January, indicating a bearish consumer sentiment due to high fuel and interest costs.

Data furnished Monday by the Society of Indian Automobile Manufacturers (SIAM) showed that 242,430 units were sold in the month under review from an off-take of 254,172 units in the corresponding period of 2012.

SIAM officials said the industry may not be able to meet the passenger car sales forecast for 2012-13.

In January, SIAM had reduced its passenger car sales forecast for the third time in the current fiscal. The sales growth may be flat between nil to one percent for the year ended March 31, 2013.

Last time in October, the automobile association had reduced its estimates of moderate 1-3 percent.

Three months earlier, it had projected that the segment would grow by 9-11 percent and before that at about 10-12 percent.

For last month, SIAM reported an increase of 8.46 percent in two-wheeler sales, which stood at 1,206,937 units. Total motorcycle sales grew by 7.45 percent at 886,527 units.

However, sales of medium and heavy vehicles which are a key indicator of economic activity slumped by 38.96 percent at 19,095 units being sold in January from an off-take of 31,285 units sold during corresponding month of 2012.

Total exports for the month went down by 3.86 percent at 228,179 units being shipped out.

Total domestic sales in January grew by 5.31 percent at 1,561,104 units from 1,482,437 units sold in the corresponding month of last year.