Car sales growth slowest in 2 years at 7

Rising interest rates and fuel prices have taken a toll on the countrys automotive sector,with passenger car sales registering a growth of just 7 per cent in May the slowest in nearly 24 months.

During the month,domestic sales stood at 1.58 lakh units compared with 1.48 lakh units in May 2010. With the broad macroeconomic factors still remaining bleak,experts said that Society of Indian Automobile Manufacturers 15-16 per cent growth projection would fall below its target.

In May,total passenger vehicle sales grew 8 per cent at 2.06 lakh units from 1.90 lakh units in the same month of the previous year. Maruti Suzuki,Hyundai Motor,Tata Motors and GM grew just 5 per cent at 1.55 lakh units.