The subdued overall buying sentiment, slowing economic growth and increased cost of operation of petrol cars have added to the industry gloom.
The lynchpin of Renault's India success is a unique agreement with Nissan inked in March 1999, where the two share resources and explore synergies in purchasing, engineering, production and distribution in order to enhance productivity.
Heavy Industries and Public Enterprises Minister, Praful Patel, said that rising interest rates and hike in fuel prices are responsible for the marginal growth of auto sector in recent months.
The global automobile market is likely to grow by 5 percent a year for the next two years, led by China and India, Ford Motor Co CEO Alan Mulally said.
Toyota Kirloskar Motor reported an over two-fold increase in sales while Mahindra & Mahindra reported a 52.71 percent rise in vehicle sales .