2011: The Year Of The Diesel Cars?

The car industry cruised into 2011 on top gear , growing about 25% yearon-year , but is exiting the year on a low note after shrinking for four consecutive months before registering a 7% sales rise in November.

Rising fuel prices , spiralling interest rates , component supply issues and labour troubles , and negative consumer sentiments have all slowed down passenger car sales , which has dipped 4% in the first eight months of the financial year.

Most carmakers cut prices and offered high discounts in spite of increasing costs to attract buyers in a cutthroat market . Experts say the tough ride to continue for some more months . "The auto industry will have to live with smaller margins . The kind of super-normal profits that car companies enjoyed , is on the verge of coming to an end ," says BVR Subbu , former head of Hyundai India , who is now on board of several Indian and global companies.

The year saw several launches . Some such as the new Swift , Skoda Rapid , XUV 500, Hyundai Verna and Audi A4 took the market by storm , while others such as Nissan Sunny , Maruti Kizashi , Honda Brio , Ford Fiesta and Hyundai Eon failed to capture the consumer's imagination.