Maruti sales slide 24pc
Top Indian carmaker Maruti Suzuki reported Monday a 24.4-percent slide in car sales during November as high borrowing costs hit vehicle sales in Asia's fourth-largest car market.
The figure was a far cry from double-digit growth in previous years and highlighted the slowdown gripping India's economy that has reduced vehicle demand.
Maruti, 54.2 percent owned by Japan's Suzuki Motor Corp., said in a statement domestic car sales slumped by 26.9 percent to 44,704 units from a year earlier, while car exports tumbled by 11 percent to 5,007 units for an overall decline of 24.4 percent.
The New Delhi-based carmaker holds over 54 percent of India's car market and represents the largest global market for Suzuki, Japan's second-biggest maker of minicars.
Maruti shares plunged 9.7 percent or 52 rupees on the news to trade at 483.85 rupees.
The dramatic fall in Maruti sales was another sign of the downturn in India's car market, which has been hit by costlier loans for cars after the central bank jacked up interest rates to fight inflation.
Car loan rates still are close to 14 percent, up from around nine percent three years ago.