Siam may demand excise duty cuts as June car sales fall 9%

With car sales in June falling for the eighth month in a row and overall auto sales for the fifth consecutive month, industry body Society of Indian Automobile Manufacturers (Siam) plans to write to the finance ministry within a month seeking excise duty cuts across segments to boost sales. Auto sales have been in the slow lane for the last two years as consumer sentiment remains depressed on the back of uncertain macro-economic growth, rising fuel prices and high interest rates. In June, car sales dipped 9% to 1.39 lakh units while passenger vehicle sales fell 5% to 1.96 lakh units. While petrol car demand is yet to see a significant jump, even diesel cars, which had seen strong sales in the previous fiscal, have witnessed a drop in demand this year on the back of rising diesel prices.

Source : Financial Express