INDIA MAY not have seen much improvement in its domestic auto market this year, but its situation is better than many other developed countries. India registered an 18.2% increase in sales of passenger vehicles (cars, MPVs and SUVs) in the June quarter, the highest in the world, while the top players slipped down. According to the Society of Indian Automobile Manufacturers (SIAM) report, which was published recently, former global leader China slipped to the fourth place with 11% growth in the June quarter. The second and third positions were occupied by the US (14.4%) and Germany (14.3%), respectively.

Meanwhile, sales of commercial vehicles in India registered a 12.7% growth, helping the country climb to fourth place. China, which led global growth in the auto market last year, dropped to eighth place with negative growth of 4%.

However, India’s global market performance had no impact on auto sales in domestic market. In passenger vehicles, India posted a mere 9% increase in sales, compared to 33% growth in the June quarter of 2010. Two wheeler sales increased by 18%, compared to 26% in the respective period last year. Three-wheeler sales went down by 5%, while CV sales slumped to 14%, as against 55% in the March quarter of 2011.

Commenting on the report, a senior SIAM official said that the automobile industry would witness slow growth rate this year, however, adding that it would still be in double digits.

Pursuant to the decreasing sales performance in the vehicle market, SIAM has revised its project for 2012. As per the revised report, the industry would see an 11 to 13% growth in 2012, compared to 12 to 15% growth estimated earlier.