According to data of the Society of Indian Automobile Manufacturers (SIAM), in the last financial year 2.5 million cars were sold in India and this rate is expected to slow down in this financial year because of higher borrowing costs and surging commodity prices. 64 new cars were introduced in to the Indian automobile market last year and sales of passenger cars, including utility vehicles, increased 30% in 2010-11.
Many of the key players in the automobile market including the Maruti Suzuki which is a market leader also increased the prices because of an increase in the prices of raw materials like steel, aluminium, copper, lead and natural rubber. The growth is predicted to be in between 12% – 15% in this fiscal year.
But there are 60 new cars and bikes that are to be introduced in India this year. All the automakers are hoping to see double digit growth in sales, as the economy is growing continuously and the urban and rural populations are experiencing increased income.