Sales of automobiles in a country is a good indicator of the condition of the economy. While the sales grew by 13 per cent across all categories in 1996-97, the situation has worsened. Sales fell by 4 per cent in April to July 1997-98 compared to the same period in 1996-97.

The only categories to show positive sales were motorcycles with 11 per cent growth, cars with 7 per cent rise and three-wheelers with an increase of 4 per cent. The maximum fall was in the medium and heavy commercial vehicle segment with 28 per cent indicating that goods transportation is on the decrease too. Sales of scooters and mopeds fell by 11 per cent while light commercial vehicles were next with a fall of 10 per cent.