The government on Thursday said high interest rates and fuel prices have affected the growth of the domestic automobile sector during the recent months.
“Factors like rising interest rates and hike in fuel prices have affected the growth of this sector, thereby, showing a marginal growth during the recent months,” said Mr Praful Patel, Minister for Heavy Industries and Public Enterprises, in a written reply to the Lok Sabha.
Referring to the Society of Indian Automobile Manufacturers Association (SIAM) data, he said during April—February 2011—12, the production of passengers cars grew only 2.5 per cent year—on—year, domestic sales rose 0.31 per cent and exports jumped 16.2 per cent.
The government has taken various steps including implementation of the Automotive Mission Plan (2006—16) to boost the industry.