According to the Society of Indian Automobile Manufacturers (SIAM), the automobile sale in India has declined substantially.The data provided by the organisation points to the fact that Passenger car sales dropped from 1,15,481 in 2007 to 1,13,822 while commercial vehicle sales recorded a growth.

Automobile manufacturers like Maruti Suzuki,Hyundai Motor India,Tata Motors,Mahindra & Mahindra reported a dip in the sales curve as compared to the same month of the previous year.

Mr P. Balendran, the Vice-President of General Motors India commented that, “This is a sluggish phase for the Indian automobile industry. The passenger car market is not going to improve in the near future.” Multiplicity of factors like high finance cost, fuel price and global recession contributed towards the slowdown.In the light of the pesent scenario,the automobile industry is likely to introduce new incentives to attract potential buyers.