Staying in the slow lane: India's $70 billion car market could use a jump

Sales have been plummeting despite Modi's campaign pledges to help consumers. They'll need more than empty promises to start buying.

Heading into an election, India’s enthusiasm for cars and motorbikes has all but evaporated. It’s unlikely to return anytime soon, despite all the grand promises to improve the lives of masses.

Passenger car sales, which have been sliding since last summer, fell another 6 percent last month while those for motorbikes – the larger and more profitable market – collapsed 15 percent. Commercial vehicle sales, which include trucks and buses, also slowed. Overall production in the country’s $70 billion auto industry is slumping. Hero MotoCorp Ltd. which commands a third of the market, posted a 20 percent drop.

Bumpy Road

India's two-wheeler sales