SIAM pressnote declared that the perfomance of the auto industry was unsatisfactory.Period from April to July 2005 witnessed overall industry growth of 10.63% over same period last year. Passenger vehicles and two wheelers registered a negative growth in July 2005. Commercial vehicles and three wheelers registered a positive growth. The period of april-july 2005 had passenger cars that grew only by 2.96% whereas utility vehicles grew by 13.28% over the same period last year. Compared to july 2004 it was noticed that majority of companies in the passenger car segments registered a fall in sales in July 2005. Due to introduction of VAT and implementation of new emission norms that is a twin factor working in the market since April 2005 because of which one needs to understand whether this trend will continue or this is a temporary phenomenon .Commercial vehicles showed growth rate of only 2% and remained more or less at the same growth rate. They hoped that there will be higher growth rate in the months to come.Usually the second half of the year is always better. Because of drop in the supply of scooters in July 2005 the 2 wheeler segment as whole grew by 12.17% compared to last years period.In the coming months this segment is expected to grow at a faster rate.