"In my view, there is no way the auto industry could repeat the past growth level during this year, against the backdrop of rising inflation which has crossed the 10 per cent mark," Ford India Executive Director Nigel E Wark told reporters here today.
Rising inflation has pushed up interest rates in the economy, besides high fuel prices could deter new purchases.
"Although the industry would observe growth, it would struggle to achieve the double digit growth figure," he said while launching the new variants of Ford Fiesta.
According to Wark, the country's automobile industry achieved 15-18 per cent of growth during the last five years.
Talking about the company's ambitious small car project for India, Wark said, the company would invest $ 500 million for launching the small car by 2010.
More From This Section
"The research and development for the small car is being carried out by the company and it is scheduled to roll out in early 2010," he said.
When asked whether the company was contemplating bringing out a hybrid version for the Indian market in view of rising fuel prices, he said presently the company had no such plans as the market for these type of cars is still not developed.