Rising inflation and increasing interest rates will not affect the increase in car sales, according to senior industry officials.
Demand for new car sales is quite robust and is unlikely to decline in the immediate future, as per officials of the country’s leading 3 car makers – Maruti Suzuki, Hyundai and Tata Motors. Carl Peter Forster, Tata Motors’ group CEO said, “We believe that the fundamentals are strong. If the economy continues as it does, there should not be any impact on demand”. Forster said, the company is ‘going strongly’ in India. While the pace is anticipated to persist, the company is planning to introduce new products, he added.
Car sales are going up, after a short lull when the world economic fall affected economies throughout the world in late 2008 and early 2009. Total sales increased 25% in the local market previous fiscal and figures have been rising even rapidly this fiscal. The industry has gone up 34% in the 5 months up to August, posting an all-time record previous month. Industry officials and analysts said the high growth occurred in spite of double digit inflation and interest rates are going up. The forthcoming festival season , where sales usually top, is also anticipated to spur the demand, although there might be a “minor” lull after that, analysts said.