chennai sagging sales high interest rates has spooked the automotive industry in india automobile production in the country is expected to grow by 65 in the current fiscal as against earlier forecast of 9 by centre for monitoring indian economy cmie automobile production grew 138 in the previous fiscal the two wheeler segment which accounts for around 75 of the auto industrys total production is now likely to grow by a slow 66 as against the earlier forecast of 97 a slowdown in domestic demand coupled with a weak outlook on the exports front prompted us to revise our production forecast downwards cmie said in its economic intelligence service further commercial vehicles cv production forecast has also been revised downwards to 49 from the earlier 72 this is because of a reported 10 to 15 fall in freight rates across major routes in the country and a rise in average vehicle ownership costs cmie said passenger car and van production is likely to grow by a slow 57 in 201213 however aided by a strong 327 growth in muv production the overall passenger vehicle production is likely to rise by a moderate yet healthy 89 cmie said