Car sales in Hyderabad Were Down Contrary to the National Market


Though car sales across the country are growing dramatically, the car market in Hyderabad failed to pick up. However, the car sales of the state are up, but marginally.

According to The Society of Indian Automobile Manufacturers (SIAM), new car sales in Hyderabad recorded a negative growth of 6 percent in the second quarter compared to the corresponding quarter last year. AP car sales achieved 3 percent growth, where as the national car sales growth rate was 22 percent during the same period.

People prefer small cars to luxury cars these days. However, there is a decrease in the sales of the small cars too along with the luxury cars. In November alone, the overall drop in sale of small cars in Hyderabad is about 15 per cent. It is nominal when compared to the luxury cars whose market fell by almost 50 percent during the same period.


According to SIAM, new car sales in India recorded 61 percent year over year growth this November selling 1,33,687 units. The new vehicle market in India was subdued last year due to economic downturn. In November 2008, it fell by 20 percent compared to 2007 figures.

Analysts say that there are many reasons for the subdued growth in Hyderabad. The prime reason could be the slowdown in the IT & BPO sector. Hyderabad car sales depend a lot on trends in the IT and BPO sectors, which form a major part of prospective customers. But they are not willing to spend much these days due to financial crisis. The other area is real estate. Real estate sector, which once fuelled the car sales growth, is also down due to recession. And the third is Banks tighten the norms for vehicle loans. The reason for this the cues from the entire economy and the down trend in the IT/ITES and Realty sectors, which were the growth engines earlier in Hyderabad and this is not the case with the rest of the India.

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