Car sales in India dip by 24 percent in October

Car sales in India dip by 24 percent in October

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Asia Bizz: In the month of October 2011, the Indian market has faced a heavy dip in the sales of cars up to 23.77 percent for the first time the last ten years.  The sales of the cars have reduced due to several factors, out of which the drop in the output of the cars by Maruti Suzuki is one of the reasons.

The output by Maruti Suzuki reduced due to the labor trouble in the company. The other reason for the dip in the sales included the high interest rates of car loans and the rising fuel prices.

As the petrol prices continue to increase, the demand for diesel cars have increased. The situation has led to the shortage of diesel cars among many of the companies.

This has in turn led to a situation where car companies are not offering any discounts or offers on the diesel cars. The Society of Indian Automobile Manufacturers  released a report on November 16, 2011, which says that the domestic car sales stood at 1,38, 521 in October 2011 compared to 1,81, 704 in the same month last year. The reports are contrary to the expectations of positive sales in the month of October due to the festive season.