new delhi car sales declined for the second year in running as slowing economy high interest rates and rising fuel prices put off buyers from new purchases demand is expected to remain weak in the coming months even as companies hope that a change in government at the centre will improve sentiments and aid a faster recovery according to fiscal 201314 numbers released by industry body society of indian automobile manufacturers siam car sales closed the year at 1786 lakh units a decline of 5 over 1874 lakh units sold in the previous year industry sales were down despite the addition of new models sales had fallen 7 in 201213 which was the first fall for the indian car industry in nearly a decade last year was one of the most difficult years for the industry the business environment was tough due to low growth of economy high interest rates fuel prices and low sentiments siam president vikram kirloskar said employment mainly of contractual and temporary workers had been impacted due to the slowdown we at siam have not done a calculation of how much job losses happened but i personally feel that across the entire value chain in the auto industry from raw materials to dealerships there could be around 115 lakh job losses analysts feel that it will be sometime before a credible recovery comes in a lot depends on the outcome of upcoming elections economic stability and policy initiatives of the incoming government to drive the industry growth while the longterm potential for the indian automotive market remains positive the significant challenges witnessed in the last few years have resulted in auto industry stakeholders reworking their india strategy as they increase their focus on vehicle exports rural penetration deep localization and dealer profitability said rakesh batra partner for automotive practice at ey the impact of the negative sentiment was such that suvs and utility vehicles a category that shot up by 52 in 201223 also found itself in a tough spot sales in the category fell 5 last fiscal recent cuts in excise duty announced in the voteonaccount in february also failed to work much wonders for the industry siam said a further impetus is required whichever government comes in i am looking for stability in excise duty and some reduction in taxes kirloskar said we are an overtaxed industry companies like tata motors general motors toyota and volkswagen saw volumes finish the year in deep red even as biggies like maruti suzuki and hyundai managed to maintain numbers nearly at previous years level only companies with new models managed to register healthy growth and these included honda and ford honda saw an 82 growth in volumes on the back of new models like the amaze entry sedan and nextgeneration city while ford grew nearly 10 on the success of its eco sport suv