No respite from slowdown, car sales down 5 percent

The bad news follows a successful Auto Expo 2014 where head honchos reiterated their commitment to India and that fact that growth would come down the line. Passenger car sales in India fell 7.6 percent in January 2014, the fourth straight month of decline, as per data from Society of Indian Automobile Manufacturers (SIAM).

Car sales fell to 160,289 vehicles last month as consumers put spending on hold due to high interest rates and fuel costs in a slowing economy. A Reuter report quotes the SIAM director-general saying: "There is no respite.” Sales of passenger vehicles, which include cars and utility vehicles, fell 9.3 percent in January.

Sales of motorcycles rose 4 percent last month to 922,323 units, while commercial vehicle sales were down 20.9 percent at 49,987, SIAM said. Demand for trucks in particular and buses has been impacted by the general economic slowdown.