CAR sales grew at their slowest pace in more than two years last month, according to the sector's main industry body. High interest rates and rising fuel costs have made buyers wary.
Sales in June were up by 1.26 per cent to 143,370 units from 141,086 units a year earlier, that's according to the Society of Indian Automobile Manufacturers (SIAM).
The organisation also lowered its growth forecast for sales to between 10 to 12 per cent for the current financial year ending March 2012, down from an earlier estimate of 12 to 15 per cent.
"Interest rates have been higher than what we had thought three months earlier," SIAM president, Pawan Goenka said.
"We are sitting at a threshold where if interest rates go up further, it will have a devastating impact on the industry."
