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Business trends

India car sales post worst slump in 18 years in May amid weak economic growth

Industry group calls for government help to stimulate demand

MUMBAI (NewsRise) -- Passenger vehicles sales in India recorded the worst monthly slump in 18 years in May, as a prolonged slowdown gripped the automobile industry amidst a credit crunch.

Automotive demand in India has been cooling since July as the country faced a credit crunch and distress in rural markets. The slowing sales prompted Maruti Suzuki India, the nation's biggest carmaker, and top two-wheeler maker Hero Motocorp to slash production in recent months. Amid the weaker consumer spending, Asia's third-largest economy expanded at the slowest pace in four years during January-March.

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