Auto industry set to miss FY15 sales growth target

India's car sales are set to fall below the earlier growth target for FY15 set by the Society of Indian Automobile Manufacturers (SIAM).

"Car sales growth this financial year is likely to be below 5 per cent," Sugato Sen, deputy director-general, SIAM, told reporters on Monday.

In August, the industry body had said it expected domestic car sales to grow between 5 and 10 per cent, helped by an improved sentiment after the Narendra Modi government took office in May following a victory in the general elections.

"We are not being able to sustain only by creating positive sentiment," said Sen. "Unless the real economy starts growing... we may not see a very robust growth in the auto sector, especially the passenger vehicle market."

Car sales are expected to rise this financial year after falling for two consecutive years, says SIAM.

Sale of passenger vehicles, which includes cars and utility vehicles, fell 7.5 per cent in October to 221,151 units from a year ago, breaking a consecutive rise for five months.

Passenger car sales were lower by 2.6 per cent.

(Reuters)