Indian auto industry has seen some of its worst days in the past few months and the reasons have been many. The sales have dropped by 8.8% this year as Maruti Suzuki sold 80,298 units almost 8000 units down on comparison to India’s no 1 automaker’s last year sales during the same month. The slowdown has surely been due to the factor or rising fuel prices in the country also the increase in interest rates have had a negative impact too.

According to RC Bhargava, Chairman, Maruti Suzuki the recent drop in sales is not only because of the hike in fuel prices and the rise of interest rates although these actors do play a major role in the drop of sales. But according to him the auto industry in the country has had huge up’s and down’s this past couple of years infect the company Maruti Suzuki itself has grown by 30% last year and the drop of sales this year was obvious.

Leaving all these factors aside Maruti Suzuki is focusing on its launch of the new Maruti Suzuki Swift which will be seeing its entry into the market this august and the company officials believe that the car sales will pick up by Diwali. Maruti has already stopped its old Maruti Swift production and its waiting for the coming of its new model.

Maruti Suzuki had also recently had to deal with its labour problems leading to huge production losses thus the reason of its delay in the release of its new model. It will be interesting to see how the competitor car company’s will cash in their opportunities to compete with this model and to increase there own car sales.