India FY12 car sales growth seen at 0-2%

Car sales in India are expected to grow by an annual 0-2 per cent in the current financial year that ends in March,the Society of Indian Automobile Manufacturers (SIAM) said on Tuesday,as it cut its growth forecast for the third time this year.

Car sales in India grew 30 per cent in the previous fiscal year but are down 2.3 per cent in the current fiscal year so far,reflecting high interest rates,rising fuel prices and increased input costs for manufacturers.

The industry body has already cut its car sales growth forecast twice this year,slashing it to 2-4 per cent in October from its initial forecast of 16 to 18 per cent.

SIAM raised its sales growth forecast for commercial vehicles to 18-20 per cent from 13-15 per cent.