Interest rates, fuel prices dragging auto sector: Govt

Mar 23 2012, 16:31 IST
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SummaryThe government has taken various steps to boost the industry.

The government today 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," Heavy

Industries and Public Enterprises Minister Praful Patel said 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.

It includes attracting more investments, providing a direction to help transform the industry into a global automobile player.

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