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A Tata Motors Nano car is loaded onto a goods train for shipment at Sanand railway station in the western Indian state of Gujarat September 1, 2011. Total car sales in India fell almost 16 percent in July, marking the first drop in two-and-half years, as borrowing costs rose following multiple rate hikes by the central bank. REUTERS/Amit Dave (INDIA - Tags: BUSINESS TRANSPORT)
A Tata Motors Nano car is loaded onto a goods train for shipment at Sanand railway station in the western Indian state of Gujarat September 1, 2011. Total car sales in India fell almost 16 percent in July, marking the first drop in two-and-half years, as borrowing costs rose following multiple rate hikes by the central bank. REUTERS/Amit Dave (INDIA - Tags: BUSINESS TRANSPORT)
(AMIT DAVE/REUTERS)

Financial Times

India’s auto market struggles to find next gear

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There are almost four times more people in India than the U.S., but last year there were almost eight times more cars sold in America. In spite of the potential, India’s car market has gone into reverse. The 1.9 million cars sold there over the past 12 months was down 7 per cent from a year earlier, the country’s auto industry body said on Wednesday. It expects car sales in the world’s seventh largest car market to pick up by 5 per cent at best this year. But then a year ago it was predicting growth of 10 per cent.