Tough road ahead for India carmakers as boom market crashes

India’s annual car sales fell for the first time in a decade in the just-ended financial year, official data will show on Wednesday, calling into question bullish growth expectations that fuelled billion-dollar bets from global manufacturers.

Carmakers in India, two years ago the world’s hottest growth market after China, have seen high interest rates, rising fuel prices and prolonged economic gloom turn an industry recently growing at 30 per cent a year into one plagued by huge discounts, showrooms full of unsold cars, and chronic overcapacity.

via Business feed http://www.scmp.com/business/companies/article/1211394/tough-road-ahead-india-carmakers-boom-market-crashes