Rising Transaction Cost: A threat to sales growth
In 2010/11, domestic vehicle sales are seen rising by 12 to 13 percent but the rising costs could hinder the sales growth. The vehicles sales have shown a growth of 22 percent with car sales showing a growth of approximately 24 percent in the first nine months of current fiscal year. However annual vehicle sales growth in the January-March quarter is expected to be lower compared to the previous quarter's growth, due to the higher base effect. Pawan Goenka, president of the Society of Indian Automobile Manufacturers (SIAM) commented that if the transaction costs had gone up then the demand would go down.